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Fighting Medicare payment cuts in 2023 and beyond

Illustration for Impact Report on Medicare cuts

We want to help maintain stability for dermatology practices as the country faces significant economic challenges, rising costs, and continued efforts to rebuild from the COVID-19 public health emergency (PHE). We are urging Congress to take action to stop pending Medicare payment cuts that could negatively impact patients’ access to care and mitigate the financial distress facing dermatology practices.

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 (PAYGO). The AADA successfully fought to avert the steep cuts resulting in the president signing a bill into law 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, and eliminated the 4% PAYGO budget rules and any further PAYGO cuts through 2022.

However, CMS has again released a proposed Medicare Physician Fee Schedule (MPFS) rule, which proposes a cut of nearly 4.5% in the Medicare conversion factor, which is the key component in determining Medicare physician payments. Additionally due to budget rules created by PAYGO, physicians will see an additional 4% cut to Medicare payments.

What is the Academy doing?

We advocate for legislative action to provide a permanent fix to preserve patients’ access to care and mitigate the financial distress facing dermatology practices during these unprecedented times. The AADA and the entire physician community are urging Congress to:

  • Replace scheduled and anticipated cuts in Medicare physician payments with positive, inflation-based updates for at least one year.

  • Eliminate the nearly 4.5% cut in reimbursement in the 2023 Medicare proposed rule.

  • Waive the 4% PAYGO cuts.

We are putting the full weight of the Academy’s advocacy toward addressing this issue, working alone and in coalition with the house of medicine. Dermatologists must participate and lend their voice.

Make your voice heard

Contact your member of Congress using our convenient site and share how Medicare issues impact your practice.

Be heard