Get Ready to Rumble

The powers that be have spoken, and unfortunately the news is not good for dermatologists like me who participate in the Medicare program.

A trifecta of cuts is expected in January 2022, and we’re on the clock. Without intervention, dermatologists may be on the hook for a 9.75 percent reduction in fees starting January 1, 2022. Yes, you read that correctly: A 9.75 percent reduction. That’s going to hurt.

Here’s a snapshot of what’s to come:

3.75 Percent Decrease in Medicare Reimbursements.

The Evaluation and Management Code revaluation led to the 2022 conversion factor being decreased by 3.75 percent.

2 Percent Decrease from Medicare Sequestration.

The Budget Control Act called for budget cuts over nine years to reduce the federal budget deficit including an annual two percent cut to Medicare payments. This is also known as Medicare sequestration, and it is set to be reinstated on January 1, 2022.

4 percent PAYGO Cuts.

In a nutshell, pay-as-you-go (PAYGO) is a budget rule requiring that new legislation that affects revenues and spending on entitlement programs does not increase projected budget deficits. If the enacted legislation increased the deficit, then the PAYGO sequestration is triggered to reduce the deficit by the annual amount of increased deficit. The PAYGO sequester has never been triggered, but without action, 2022 will mark the first time that Congress has failed to waive it. The result? Medicare would enact a four percent reduction of payments.

The American Academy of Dermatology Association (AADA), the American Academy of Dermatology’s advocacy arm, is working to:

• Keep the 3.75 increase to the conversion factor through 2022. This was instituted to counteract the loss in revenue related to COVID-19 in 2021.
• Maintain sequestration deferment for a fourth term.
• Waive PAYGO.

It’s time to act. If you have any contacts on Capitol Hill or know any of your state representatives, let them know what you think about these proposed cuts, and share your contacts with the AAD. Be on the lookout for AAD tool kits containing letters and other action items that can be tailored to your representatives to get them to act. It’s time to make some noise

Feel free to reach out to me directly on these pressing matters. I can be reached at mkderm@me.com.