Temporary Increase in the Medicare Physician Reimbursement Rate 

First, the bill includes a one-year extension of the 2.5% increase in Medicare reimbursement rates. This increase was originally meant to help providers recover from the financial strain of the pandemic, and now it’s been extended through the end of 2026. 

For dermatology practices, this means a little more financial breathing room. With operating costs still high and reimbursement often falling behind, this extension offers some short-term relief. It helps practices better manage rising costs for staffing, supplies, and patient services. 

SDPA made a strong case for this extension during recent meetings with lawmakers. Members shared real stories and made it clear: fair reimbursement is essential for dermatology clinics to stay open to Medicare patients.  

That said, this relief is temporary. And while it's a welcome reprieve, it comes alongside broader reductions in other areas. The current extension does not address the underlying structural issues in Medicare’s payment model, and we’ll need to continue pushing for more lasting reforms that truly support long-term practice viability. 

Increasing Access to Orphan Drugs 

The second big change impacts how Medicare handles orphan drugs. These are drugs that are used to treat rare conditions. Previously, only drugs with one orphan designation were exempt from Medicare drug price negotiations. If a drug had more than one designation, it could lose that exemption and face pricing pressure and reimbursement challenges that could often lead to less patient access. 

The new law fixes this. Now, drugs with multiple orphan designations will stay exempt from negotiation unless they’re approved for a non-orphan condition. This is especially important in dermatology, where rare autoimmune and genetic skin diseases often rely on specialty treatments. 

This change helps protect patients' access to vital medications. It also reassures drug makers that developing treatments for rare conditions is still worth the investment. For PAs caring for patients with complex conditions, this means fewer disruptions to the therapies those patients depend on. 

Our Advocacy Is Working, But the Work Isn’t Over 

These wins didn’t happen by accident. SDPA and its partners were on the ground in Washington, meeting with lawmakers and advocating for the needs of dermatology PAs and the patients you serve. These provisions reflect our influence but also remind us that advocacy is ongoing. 

The One Big Beautiful Bill Act is a mixed bag: some meaningful progress, but also a reminder that everything comes in the context of broader policy negotiations. As we look ahead, SDPA remains committed to working with policymakers to ensure dermatology practices and PAs not only survive but thrive.