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Important CMS Proposal Impacting Dermatology Practices
- August 20, 2026
CMS has proposed changes to reimbursement for Modifier 25, which is used when a patient requires a significant, separately identifiable evaluation and management (E/M) service on the same day as a minor procedure. In dermatology, this is a common and medically appropriate part of patient care.
Examples include:
- Evaluating a suspicious lesion before performing a biopsy.
- Treating actinic keratoses while also managing chronic conditions such as eczema or psoriasis.
- Assessing a new skin concern during a visit that also requires a medically necessary procedure.
If finalized, this proposal could have far-reaching consequences for dermatology practices and Medicare beneficiaries by:
- Reducing reimbursement for appropriately documented E/M services.
- Increasing the need for additional patient visits.
- Delaying diagnosis and treatment, including the early detection of skin cancer.
- Increasing costs and inconvenience for patients.
- Adding unnecessary administrative and financial burdens to dermatology practices.
CMS Proposed Rule – https://www.cms.gov/medicare/payment/fee-schedules/physician
CMS Fact Sheet – https://www.cms.gov/newsroom/fact-sheets/calendar-year-cy-2027-medicare-physician-fee-schedule-proposed-rule
Submit a Comment to CMS – https://www.regulations.gov/document/CMS-2026-2377-0002
Sample Comment Letter – https://acrobat.adobe.com/id/urn:aaid:sc:US:31914239-1b10-4be8-8949-a5acad16ee51