Win back time with AAD’s top-rated prior authorization tool
Answers in Practice
By Olivia Barry, Manager, Practice Management, October 1, 2025
Each month, DermWorld tackles issues “in practice” for dermatologists. This month, practice management staff discuss what dermatology practices need to know about the Academy’s prior authorization tool.
For busy dermatology practices, navigating prior authorizations can feel like a daily balancing act between patient care and paperwork. Prior authorizations remain one of the top challenges facing dermatologists — costing practices an average of $40,000 annually and consuming roughly 3.5 hours each day just managing the process, according to a 2020 AAD member survey. But the burden goes beyond time and cost. The AAD survey revealed around 60% of dermatologists report having to interrupt patient visits, including those involving surgeries or procedures, to address prior authorization issues — delaying care and disrupting workflow.
Recognizing the heavy toll prior authorizations have on patient care and practice efficiency, the Academy developed an intuitive, expert-driven tool designed to streamline the process. Continually expanded and refined over time, it simplifies prior authorizations in just a few steps — delivering fast, customizable appeal letters to help you save time and reduce administrative strain.
Learn how the tool works, what’s been updated, and how you can play a role in its growth and evolution.
Explore the tool
The prior authorization tool is a customizable, clinically specific tool that allows you to quickly generate over 70 prior authorization appeal letters for common FDA-approved dermatologic drugs and conditions, including acne, psoriasis, atopic dermatitis, and more. These letters include medical rationales and references authored by AAD members recognized for their expertise in each diagnosis. To ensure accuracy and relevance, all letters undergo an annual review by expert contributors, keeping the content up to date with the latest clinical evidence and practice standards.
Navigate the tool with ease
To get started, log in to your AAD account and open the Prior Authorization Appeal Letter Tool. Select the relevant condition from the dropdown menu, then choose the drug to build your custom letter. Enter key details, including insurance information, patient data, and any previously prescribed therapies (skip any fields if needed). With just a few clicks, the tool generates a fully customized appeal letter, ready for download.
Discover the latest enhancements
The prior authorization tool keeps evolving to better serve dermatologists. Recently, a more streamlined, easy-to-read letter template was developed to draw attention to the most important details of the letter quickly. A consistent naming convention for all the available drug letters was adopted to streamline the selection process. Currently, the tool has grown to include 15 diagnoses and 72 customizable letters. In just the past two years alone, five new diagnoses have been added, including prurigo nodularis and molluscum contagiosum in 2024, along with 18 new letters.
Usage is also on the rise, with more than 5,300 users generating over 8,100 letter downloads in 2024 alone. However, the tool’s actual impact likely goes far beyond what the numbers show. Once downloaded, letters can be saved locally and reused without accessing the tool again, meaning many are used repeatedly in practice in ways that aren’t reflected in usage data. While these behind-the-scenes uses are harder to track, they reinforce the tool’s practical value across dermatology practices. These ongoing improvements and widespread adoption highlight the tool’s growing role in reducing administrative burdens and improving access to care.
Patient portals
Help improve and grow the tool
Dermatologists have first-hand insight into the treatments their patients need and the challenges they face when access is delayed. A 2020 AAD survey found that about 25% of dermatology patient treatments require prior authorization. Among those not approved, 27% delay or abandon treatment, while others are redirected to step therapy or alternative options. This can be detrimental to patient health outcomes.
That’s why your input is so valuable in shaping and strengthening the prior authorization tool. Members can submit requests via the practice management request form to have additional FDA-approved drugs included based on real-world clinical needs. Submissions are reviewed by the AAD practice management staff and vetted by AAD governance bodies. When approved, the team collaborates with experts to develop and publish new letters within weeks.
We welcome your suggestions for new letters, ideas to improve the tool’s accuracy and usability, and success stories about how the tool has helped your practice. Your feedback helps ensure the tool remains practical, effective, and tailored to the needs of dermatology practices and their patients.
Boost efficiency with key resources
Looking to set up a more efficient prior authorization workflow or reduce the administrative burden on your practice? The AAD offers a variety of resources to help you implement best practices, streamline your appeals process, and support staff and patients through each step. Explore the following tools and guidance:
Don’t let prior authorizations add to your administrative workload or delay patient care. Use the AAD’s most widely used tool to streamline the process, reduce administrative burden, and support better outcomes through timely access to needed treatments.
The prior authorization tool is built with member input and expertise and designed to grow with the needs of dermatology practices. Explore the tool, take advantage of its resources, and share suggestions for new letters or diagnoses. Through continued member engagement and collaboration, the tool will remain an evolving resource that supports both clinical excellence and patient access to care.
For more efficiency tools and guidance to enhance your practice, visit the AAD Practice Management Center.
More answers
Need more insight on managing your practice?
Additional DermWorld Resources
In this issue
The American Academy of Dermatology is a non-profit professional organization and does not endorse companies or products. Advertising helps support our mission.
Opportunities
