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News
Medicare reimbursement for common dermatology procedures has dropped nearly 29% in inflation-adjusted terms since 2007, with the steepest cuts happening after 2021. Simple repairs, laser treatments, and Mohs surgery took the biggest hits. Meanwhile, procedure volumes are actually up — meaning dermatologists are doing more work for significantly less pay.
Medicare has been steadily reducing what it pays dermatologists — and a new study in JAMA Dermatology puts hard numbers to the trend. Inflation-adjusted reimbursement for 15 categories of common dermatologic procedures fell by an average of 28.9% between 2007 and 2026, with the bulk of that decline hitting after 2021. The 2026 Medicare fee schedule added further pressure, cutting work RVUs by 2.5% for most non-time-based services.
The cuts weren't evenly distributed. Simple repairs saw the steepest drop (45%), followed by laser/phototherapy (40.5%), split-thickness grafting (37.8%), and Mohs micrographic surgery (35.4%). Even biopsy and shave-removal payments, which had briefly risen through 2021, ended up below their 2007 levels by 2026.
By the Numbers:
Why it matters: Dermatologists are seeing more patients than ever, but getting paid significantly less per procedure in real terms. The authors note these findings are directly relevant to ongoing policy debates about indexing physician payments to the Medicare Economic Index — a reform that could help prevent further erosion of physician reimbursement across specialties.
