Medicare pay cut sparks specialty battle over skin cancer care

Advertisement

Five Republican members of Congress have pressed CMS Administrator Mehmet Oz, MD, and HHS Secretary Robert F. Kennedy Jr. to reverse a roughly 75% Medicare payment cut tied to image-guided superficial radiation therapy, a skin cancer office-based treatment for less serious skin cancer types, Politico reported July 31. 

Sens. Eric Schmitt of Missouri and Roger Marshall, MD, of Kansas along with Reps. Ronny Jackson, MD, of Texas) and Brian Jack of Georgia sent the initial letter in November urging CMS to delay the cut prior to taking effect Jan. 1. Rep. Carol Miller of West Virginia signed on in a follow-up letter sent the week of July 20.

“Preserving access to this lower-cost, office-based treatment option will help advance President Trump’s goals of empowering patients, supporting independent medical practices, and improve healthcare quality and affordability for America’s seniors,” the most recent letter to Mr. Kennedy and Dr. Oz said, according to Politico.

The push comes as CMS proposed a rule July 14 that would slash Medicare physician base rates for 2027 by up to 1.68%, to $32.84, as part of a larger overhaul of accountable care organization payments and a phaseout of the agency’s decade-old MIPS quality-reporting program. 

It also highlights an ongoing dispute between dermatologists offering office-based image-guided radiation therapy and radiation oncologists over Medicare reimbursement and appropriate use of the treatment. CMS and the American Medical Association sided with the radiation oncologists amid the process. 

“The cuts to superficial image-guided radiotherapy were extremely appropriate,”

Christopher Jahraus, MD, a radiation oncologist in Alabama, told the publication. 

Dr. Jahraus also said the radiation oncology codes to treat skin cancer had been “inappropriately” used by dermatologists, leading to overspending by the government. 

Kerwin Brandt, CEO of Burr Ridge, Ill.-based SkinCure Oncology, told Politico that more than 160 of the dermatology practices his company partners nationally with have ended the image-guided therapy since the pay cut went into effect, which has pushed rural patients toward less-accessible urban cancer centers. 

Meanwhile, radiation oncologists reported double-digit reimbursement declines nationally under a 2026 billing-code overhaul, which highlighted how tightening, budget-neutral fee schedules have increased specialty-versus-specialty fights over a dwindling pool of Medicare dollars.

CMS finalized the image-guided therapy rates “following a review of the available information and the public comments received through the rulemaking process.” It also continues to meet with stakeholders regarding the services and “will continue to be open to hearing feedback on the effect of final policies for consideration in potential future rulemaking,” the agency told Politico

Becker’s has reached out to Mr. Schmitt’s office and will update this story should more information become available. 

At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.

Download Whitepaper

The cost-saving opportunity most health systems overlook

Many hospitals and health systems scrutinize staffing, service lines, and payer contracts for savings. Fewer look at one of their largest assets: real estate.…

Advertisement

Next Up in Financial Management

Advertisement