Advocacy Update Mar. 25, 2025
IN THIS ISSUE / Mar. 25, 2025
MedPAC recommends physician pay tied to inflation, Academy urges full MEI update
Support the second-largest physician PAC and dermatology champions
Regulatory Affairs
AADA backs dermatologists on CLIA lab director requirements
On March 19, AADA advocacy member leaders met with CMS to address concerns with recent changes that exclude dermatologists from qualifying as CLIA lab directors after Dec. 28, 2024. The AADA outlined how the current lab training is part of dermatology certification and the requirements for certification in dermatopathology and Mohs surgery.
CMS was receptive to the information provided and is open to further consideration of a dermatology pathway for moderate and high complexity lab directors. The newly empaneled AADA Work Group on CLIA will convene to develop recommendations as requested by CMS.
The Academy developed member resources on this new CLIA policy and encourages dermatologists to review these periodically throughout this process.
Medicare Physician Payment Reform
Next steps for Medicare physician payment reform
Congress averted a government shutdown on March 14, but neglected to stop cuts to Medicare physician payment rates in 2025.
The continuing resolution (CR) funded the government at 2024 levels through the end of September. For dermatologists, it extended telehealth flexibility during the same time frame.
Lawmakers had hoped to use the CR to reverse the Medicare cuts amounting to 2.8%, but the ongoing dysfunction in Congress caused this plan to be scrapped. Republican leaders in the House of Representatives are now saying they hope to include 2025 Medicare payment reform in a possible budget reconciliation bill, along with larger priorities like tax reform and border security, but this is very tentative and could take until the fall.
In addition to the budget reconciliation process, there has been interest in the Senate to revive the bipartisan health package from December, which among other things would have erased most of the 2.8% Medicare pay cut that physicians are now facing.
Given the uncertainty, the AADA continues to press Congress to reform Medicare physician payment with an inflationary adjustment for 2025 and will continue to advocate for long-term Medicare physician payment reform.
We need all of our members to contact their federal legislators and ask them to pass HR 879, the Medicare Patient Access and Practice Stabilization Act. This bill prospectively stops the entirety of the current reimbursement reduction and helps account for rising inflationary costs with a 2% payment increase. Congress needs to stop this year’s Medicare cuts as soon as possible to protect patient access, while it continues to work toward longer-term payment reform and stability. Stay tuned for further alerts and information as Congress’s next steps take shape.
Regulatory Affairs
MedPAC recommends physician pay tied to inflation, Academy urges full MEI update
In its March 2025 report (PDF) to Congress, the Medicare Payment Advisory Commission (MedPAC) recommended linking physician payment rates to the Medicare Economic Index (MEI) minus 1 percentage point for calendar year 2026. While MedPAC acknowledged that rising costs could be difficult for clinicians to absorb, it maintained that current payments appear adequate based on its indicators.
Beyond this recommendation, MedPAC also discussed broader reforms to the Medicare Physician Fee Schedule (MPFS) during its March 6, 2025, meeting on ‘Reforming Physician Fee Schedule Updates and Improving the Accuracy of Relative Payment Rates.’ In response, the Academy urged MedPAC to tell Congress to implement an annual MPFS update tied to the full MEI to better address financial strain, prevent further consolidation, and ensure continued patient access to care.
As a reminder, MedPAC is an advisory body to Congress and does not have the legal authority to implement its recommendations.
State Advocacy
AADA supports tax-free sunscreen proposal in New Jersey
The AADA supported (PDF) New Jersey Governor Murphy’s proposal to exempt sunscreen from the state sales tax, which would be the latest effort in New Jersey to prevent skin cancer. The proposal was included in the Governor’s budget proposal, which must be approved by the legislature.
As a member of the SUNucate Coalition, including medical specialty associations, patient, public health, and other groups, the AADA expressed its gratitude for the governor’s proposal to exempt sunscreens from sales taxes in New Jersey, adding, “We believe this would be a significant step in promoting skin cancer prevention by increasing access to an essential skin protection measure, and thereby potentially reducing the long-term financial burden associated with skin cancer treatment.”
AADA News
Support the second-largest physician PAC and dermatology champions
As of March 13, SkinPAC has raised $536,102 from 535 individuals. SkinPAC is now the second-largest physician-led political action committee, right behind the American Society of Anesthesiologists PAC!
SkinPAC helps strengthen our relationships on Capitol Hill and reinforces AADA’s grassroots advocacy and lobbying efforts. Through a non-partisan political action committee like SkinPAC, we can support candidates who understand and fight for dermatologists and our patients. SkinPAC is a critical tool that ensures we have opportunities to educate legislators and candidates on how their policies affect our practices and our patients.
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.
