Advocacy Update Jan. 21, 2025
IN THIS ISSUE / Jan. 21, 2025
MedPAC recommends 2026 Medicare payment update linked to inflation
Advocacy win: FTC releases second report on egregious PBM practices
AADA urges UnitedHealthcare to rescind laser policy for vitiligo
Dr. Green hosts Rep. Elfreth to discuss Medicare physician payment reform
Medicare Payment Reform
MedPAC recommends 2026 Medicare payment update linked to inflation
On Jan. 16, the Medicare Payment Advisory Commission (MedPAC) recommended linking 2026 Medicare physician payment update to the growth in the cost of providing care, minus 1 percentage point. The MedPAC recommendation aligns with AADA’s commitment to reforming the current Medicare physician payment rate to the annual inflation rate. Congress takes MedPAC recommendations on Medicare physician rates into account when developing Medicare payment policies.
The Medicare Economic Index (MEI), which measures practice cost inflation, is projected to increase by 2.3% in 2026. Under MedPAC’s recommendation, subtracting 1 percentage point from the MEI would result in a 1.3% payment increase for 2026. This payment update exceeds MedPAC’s recommendation from last year to increase Medicare payments by 50% of the MEI.
As a reminder, MedPAC is an advisory body to Congress and does not have the legal authority to implement its recommendations.
Drug Access
Advocacy win: FTC releases second report on egregious PBM practices
In response to advocacy by the AADA and its coalition partners, the Federal Trade Commission (FTC) has undertaken an inquiry into pharmacy benefit managers (PBMs) and their impact on drug affordability. The AADA supports a multifaceted approach to fixing the drug cost crisis by promoting transparency, removing barriers to generic alternatives, limiting unannounced price hikes, and requiring more oversight of PBMs.
The FTC released a second interim staff report scrutinizing the impact of PBMs on prescription drug affordability and access. The report exposes how PBMs manipulate prices and extract exorbitant profits by inflating the costs of specialty generic drugs, including life-saving medications for cancer and other critical conditions.
The first report was released in July and exposed how PBMs exert significant influence over the price and availability of drugs.
Payer Advocacy
AADA urges UnitedHealthcare to rescind laser policy for vitiligo
The Global Vitiligo Foundation, the Photo Dermatology Society, and the AADA asked UnitedHealthcare (UHC) to rescind its policy that considers excimer laser treatment for vitiligo as not medically necessary. In a joint letter to UHC (PDF) detailing objections to the carrier’s Light and Laser Therapy Policy (PDF), effective Dec. 1, 2024, the groups urged UHC to rescind the policy. The AADA is planning to meet with UHC in the next few weeks to address our concerns with this policy.
AADA News
Dr. Green hosts Rep. Elfreth to discuss Medicare physician payment reform
A new Congress brings new opportunities to get involved in AADA advocacy. Do you have a new member of Congress? Hosting a practice visit is a great way to build a relationship and educate them on the importance of Medicare physician payment reform. AADA staff can help with scheduling, talking points, and tips for hosting your legislator. Contact grassroots@aad.org for more information.
AADA News
SkinPAC hosts breakfast for Rep. John Joyce, MD, FAAD
AADA News
Support dermatology concerns through SkinPAC
As of Jan. 16, SkinPAC has raised $18,288 from 21 individuals. Help us start the new year and new election cycle strong by contributing to SkinPAC today! SkinPAC helps strengthen our relationships on Capitol Hill and reinforces our grassroots and lobbying efforts.
Contribute online at www.skinpac.org or by texting SkinPAC to 71777. Email skinpac@aad.org with any questions
The political purpose of the American Academy of Dermatology Association Political Action Committee ("SkinPAC") is to solicit and receive contributions to be used to make political campaign expenditures to those candidates for elective office, and other federal political committees, who demonstrate understanding and interest in the view and goals of the American Academy of Dermatology Association.
Contributions to SkinPAC are not deductible for federal income tax purposes. Contributions to SkinPAC must be made from your funds and may not be reimbursed. SkinPAC cannot accept contributions from corporate accounts. Any recommended contribution amount is merely a suggestion. All AADA members have the right to contribute more or less or refuse to contribute without reprisal. Federal law prohibits us from accepting contributions from foreign nationals. Federal law requires us to use our best efforts to collect and report the name, physical address, occupation, and name of the employer whose contributions exceed $200 in a calendar year.
