Advocacy Update June 3, 2025
IN THIS ISSUE / June 3, 2025
AADA advocates for revisions to CLIA lab director requirements
AADA urges DOJ to tackle Medicare payment reforms and CLIA lab director restrictions
Regulatory Affairs
AADA advocates for revisions to CLIA lab director requirements
The AADA continues productive discussions with CMS advocating for revisions to recent CLIA laboratory director requirements to ensure that all board-certified dermatologists are appropriately approved as lab directors of dermatology labs.
The Academy’s workgroup, which is comprised of Mohs surgeons, dermatopathologists, and general dermatologists, has met with CMS to advocate on behalf of all dermatologists. Because of this ongoing advocacy, CMS has committed to working directly with the AADA to address any individual issues dermatologists may be experiencing with their CLIA applications.
What you need to know
If you are already serving as a lab director you are effectively “grandfathered” under the current regulations, and no further action is required.
If you are a first-time lab-director or plan to change practice locations, open a new lab, or become a director of a different lab, you may be subject to the new requirements. Experience gained during dermatology residency or an ACGME accredited fellowship may count toward this requirement.
What you can do
Due to the AADA’s ongoing communications with CMS, the agency has committed to working with dermatologists individually to resolve any compliance issues related to the new requirements. The Academy advises members to continue applying to be lab directors through the standard process.
If you encounter any issues, contact AADA at regulatory@aad.org. The Academy will coordinate directly with CMS to help ensure your application receives appropriate review and to assist in resolving any issues.
Regulatory Affairs
AADA urges DOJ to tackle Medicare payment reforms and CLIA lab director restrictions
On May 23, the AADA asked the Department of Justice (DOJ) to act on anticompetitive practices in health care (PDF). The letter highlights federal policies that accelerate consolidation among physician practices and limit patient access to care, a trend driven largely by instability in Medicare physician payment.
The AADA responded to a Request for Information on eliminating anticompetitive laws and regulations that undermine free market competition and harm consumers.
Specifically, the AADA called for increasing the outdated $20 million budget neutrality threshold, correcting flawed utilization assumptions, and advancing statutory reforms to provide inflation-adjusted payment updates.
The AADA also urged the DOJ to support revisions to CLIA lab director requirements to include dermatologists certified by the American Board of Dermatology or the American Osteopathic Board of Dermatology among the physician specialties eligible to direct moderate- and high-complexity laboratories.
State Advocacy
Advocacy win: Step therapy reform law enacted in New Jersey
New Jersey Governor Phil Murphy (D) signed step therapy reform legislation into law, effective Jan. 1, 2026. The new law places guardrails around the use of step therapy protocols by state-regulated health plans, including Medicaid. The AADA has supported this effort since 2020 in partnership with the Dermatological Society of New Jersey, Medical Society of New Jersey, and State Access to Innovative Medicines Coalition (SAIM). The new law includes provisions of the model bill developed by the AADA and other members of SAIM.
AADA News
Become an AADA Advocacy Key Contact
Are you looking to bring your advocacy efforts to the next level? Consider becoming an AADA Advocacy Key Contact.
AADA Advocacy Key Contacts are grassroots advocates who foster relationships with their lawmakers and help to tell the story of how healthcare policies impact patients and physicians every day.
Advocacy Key Contacts receive resources and support from AADA staff. They are a trusted resource for their elected officials on policy issues affecting dermatologists and the specialty. Check out the Advocacy Key Contact program for more information.
Already have a relationship with a member of Congress? Let AADA staff know by emailing grassroots@aad.org.
AADA News
Support SkinPAC to elect dermatology champions
As of May 29, SkinPAC has raised $639,049 from 623 individuals. 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.
