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CORRECTION: Congress moves to repeal flawed SGR

February 8, 2014

The American Academy of Dermatology Association would like to clarify information that was distributed in the Dermatology Advocate e-newsletter on Feb. 7. In the article "Congressional committees release Medicare payment reform proposal," the summary read:

“Phased-in cuts of 20 percent or more over two years beginning with the 2015 physician fee schedule.”

To clarify, there is no impending cut that will be phased in. Rather, this provision would require that any cuts to individual CPT codes of more than 20% as determined in future final Medicare physician fee schedules be phased-in over a two-year period to “dampen” the impact of those cuts. The current system requires all cuts to CPT codes go into effect immediately at the start of the calendar year.

The Academy worked for the inclusion of similar language that would have required a longer period of transition; this is considered a compromise to our request.

To reiterate, the bill would replace a 24% across-the-board cut in Medicare payments with small, positive updates of 0.5% for the next five years. Additional details on the legislation are available on the AAD Website.

The Academy apologizes for any confusion that this article may have caused. For more information, contact Shawn Friesen at sfriesen@aad.org.

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American Academy of Dermatology
930 East Woodfield Road, Schaumburg, IL 60173
Main: 847.330.0230   Fax: 847.330.0050