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Advocating for you — We prevented Medicare cuts in 2022

In 2021, the specialty was facing Medicare payment cuts of up to 10% due to the policy changes with the evaluation and management (E/M) codes, sequestration, and the budget rules associated with the Pay-As-You-Go Act of 2010. The AADA focused on averting the steep cuts — looking for long-term solutions to stabilize the Medicare program.

We worked through direct lobbying efforts, coalitions, the annual Legislative Conference, and grassroots advocacy efforts to ensure the dermatology perspective was heard. Our advocacy resulted in the president signing a bill into law in December 2021 that:

  • Included a 3% increase in the Medicare physician payment schedule for 2022 (0.75% less than in 2021)

  • Reinstated the Medicare sequester in phases:

    • Full relief from the 2% sequester cut for the first three months (Jan. 1, 2022 – March 31, 2022)

    • 1% sequester reinstatement (April 1, 2022 – June 30, 2022)

    • Full 2% sequester reinstatement through the end of 2022

  • Eliminated the 4% PAYGO budget rules and any further PAYGO cuts through 2022

Dermatology reimbursement reductions

Based on analysis from the AADA, dermatologists will experience incremental reductions from current levels that begin at 0.75% and reach 2.75% by July 1, 2022. If not for the AADA advocacy’s efforts, dermatologists could have seen cuts of 9.75% in 2022.

We know your practice cannot sustain further Medicare cuts while recovering from the challenges caused by the pandemic, and that an unpredictable health care landscape can shift your focus away from your patients. The AADA will continue to fight for you so that you can get back to providing high-quality patient care.

Illustration for Medicare cuts in impact report