Advocacy Update July 1, 2025
IN THIS ISSUE / July 1, 2025
Senate advances reconciliation bill with 2026 Medicare Physician Payment increase
RFK pledges to work with Rep. Joyce on Medicare physician reimbursement
AADA and DermCAC support inclusion of dermatologists in SRT Local Coverage Determinations
Build a relationship with your member of Congress this summer
Editor’s note: Next issue of Advocacy Update will be July 15
Join SkinPAC in Chicago on July 10 during Innovation Academy
Medicare physician payment reform
Senate advances reconciliation bill with 2026 Medicare Physician Payment increase
On Tuesday, the Senate advanced their version of the tax and health legislation being considered as part of the budget reconciliation process. While their version did not include the House-passed Medicare physician payment reform policy, the Senate did add a temporary one-year, 2.5% bump to the physician fee schedule for 2026 to account for sustained cuts to the Medicare physician fee schedule as they continue to work toward long-term reform. The Senate-passed bill will now return to the House for consideration given the differences between the two chambers’ bills. President Trump has asked Congress to send a bill to his desk by July 4, but it remains to be seen if House Republicans will be able to reconcile their differences with Senate Republicans and pass the bill by the end of the week.
Medicare physician payment reform
RFK pledges to work with Rep. Joyce on Medicare physician reimbursement
On June 24, the House Energy and Commerce Health Subcommittee held a hearing with Health and Human Services (HHS) Secretary Robert F. Kennedy to examine the HHS 2026 budget, where the Secretary promised to work on a solution to reform Medicare physician reimbursement.
While questioning the secretary, Rep. John Joyce, MD, FAAD (R-PA) expressed concern about the decline in reimbursements paid to physicians under Medicare Part B during the previous administration. Secretary Kennedy provided his commitment to work with Rep. Joyce and physicians in Congress to fix the erosion of reimbursement and strengthen private practice. The AADA applauds Rep. Joyce for raising this vital issue and looks forward to working with Secretary Kennedy to advance Medicare physician payment reform.
Regulatory affairs
CMS suspends CLIA lab director restrictions
CMS suspended enforcement of a CLIA policy that would have excluded board-certified dermatologists from serving as lab directors for moderate- and high-complexity labs. This is a direct result of AADA’s relentless advocacy.
Under the suspension, CMS:
Allows individuals qualified as technical supervisors to qualify as high-complexity laboratory directors for testing in dermatopathology.
Clarifies that high-complexity laboratory directors have a total of 2 years of laboratory training or experience and laboratory experience directing or supervising high-complexity testing. This includes training completed during residency or fellowship, so board certified dermatologists, dermatopathologists, and Mohs surgeons meet the requirements and do not need additional training.
Permits laboratory directors to have either at least 1 year of experience directing or supervising nonwaived laboratory testing or 20 Continuing Education (CE) credit hours in laboratory director responsibilities.
Eliminates the requirement for an additional 20 CE credit hours, so anyone previously qualified as a clinical consultant will previously qualified as a clinical consultant continues to qualify without taking further 20 CE credits.
Reimbursement
AADA and DermCAC support inclusion of dermatologists in SRT Local Coverage Determinations
The AADA and the Dermatologic Medicare Contractor Advisory Committee (DermCAC) emphasized that dermatologists are physicians qualified to perform superficial radiation therapy (SRT) for the treatment of nonmelanoma skin cancers in proposed Local Coverage Determinations (LCDs) issued by five Medicare Administrative Contractors (MACs). These included National Government Services, Noridian Healthcare Solutions, Palmetto GBA, CGS Administrators, and WPS Insurance Corporation.
An LCD is a decision made by a MAC on whether a particular service or item is reasonable and necessary and therefore covered by Medicare within the specific jurisdiction that the MAC oversees.
The letter affirmed SRT as a secondary treatment option (PDF) when surgery is contraindicated or declined, supported the inclusion of dermatologists as qualified physicians to perform SRT, and encouraged continued review of the evidence base for image-guided SRT (IGSRT) to guide future coverage decisions. The AADA and DermCAC also recommended revisions to the proposed physician qualification language to ensure appropriately trained dermatologists are not excluded from furnishing SRT.
AADA News
Build a relationship with your member of Congress this summer
Are you interested in hosting your member of Congress at your dermatology practice or meeting with them at their district office? There’s no better time than summer! AADA staff can assist in scheduling, or use this tip sheet (PDF) to schedule yourself and follow up with staff after. Let us know if you are interested or have any questions at grassroots@aad.org.
AADA News
Dr. Green attends political event on behalf of SkinPAC
AADA News
SkinPAC hosts breakfast for Sen. Peter Welch (D-VT)
AADA News
Editor’s note: Next issue of Advocacy Update will be July 15
Advocacy Update will take a scheduled break until July 15. Check out the AADA’s social media channels for any advocacy breaking news.
AADA News
Join SkinPAC in Chicago on July 10 during Innovation Academy
SkinPAC will host a donor reception on July 10 at the London House Chicago in the Etoile Room. The reception will be held from 7:30-9:00 p.m. CT and is open to all 2025 SkinPAC donors who contribute $1,000 or above and $25 for residents. To RSVP, please email skinpac@aad.org.
As of June 26, SkinPAC has raised $707,253 from 650 members. Help us keep up the momentum as we advocate for Medicare physician payment reform! 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.
