Icd-10 Codes For Skin Tag Removal: Complete Billing Guide For 2025

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Skin tags, medically known as acrochordons, are common benign skin growths. They usually appear in areas of friction such as the neck, underarms, groin, and eyelids. Although harmless, they can sometimes become irritated, inflamed, or bleed—making removal medically necessary rather than cosmetic.

For healthcare providers, correct ICD-10 coding and billing for skin tag removal are essential to ensure accurate documentation, demonstrate medical necessity, and avoid claim denials. This guide provides a step-by-step overview of coding requirements, documentation practices, and reimbursement tips for 2025.

Step 1: Identify the Skin Tag Type and Location
Accurate identification of the lesion type and body site is the foundation of correct ICD-10 coding.

Billable ICD-10 Codes for Skin Tag Removal

These codes are used when removal is required due to irritation, inflammation, bleeding, or medical concerns:

L91.8 – Other Hypertrophic Disorders of the Skin

For symptomatic skin tags (acrochordons) in areas like neck, groin, or axilla.

D23.9 – Benign Neoplasm of Skin, Unspecified

For ...
... benign skin lesions, including skin tags, when unspecified.

L98.8 – Other Specified Disorders of the Skin and Subcutaneous Tissue

For inflamed, irritated, or bleeding skin tags.

K64.4 – Residual Hemorrhoidal Skin Tags

For residual perianal tags following hemorrhoid treatment.

Non-Billable ICD-10 Codes

Avoid these codes, as they describe conditions not reimbursable for skin tag removal:

L72.3 – Miliaria Rubra (Heat Rash)

L91.0 – Hypertrophic Scar

L72.0 – Epidermal Cyst

Step 2: Confirm Medical Necessity
Insurance companies typically cover coding and billing for skin tag removal only when justified. Cosmetic removals are not reimbursed.

Medical necessity applies when:

Pain, Bleeding, or Inflammation occurs from friction with clothing/jewelry.

Daily Activities are Affected – e.g., irritation during dressing or hygiene.

Risk of Infection or Recurrent Irritation exists – especially in high-friction/moisture areas like the neck, groin, or under breasts.

Step 3: Ensure Proper Documentation
Accurate documentation is crucial for ICD-10 coding and insurance reimbursement.

Clinical Notes: Record size, number, and location of skin tags; include symptoms like bleeding, pain, or irritation.

Procedure Details: Note the removal method (excision, cauterization, cryotherapy), anesthesia type, complications, and follow-up care.

This helps justify medical necessity and reduces claim denials.

Step 4: Apply CPT Codes and Modifiers
CPT Codes for Skin Tag Removal

11200 → Removal of up to 15 skin tags in one session.

11201 → Each additional 10 tags beyond the first 15.

Anesthesia Codes

If anesthesia beyond local is used:

00100 – 01999 (depending on anesthesia type)

Common Modifiers

25 – Separate, significant E/M service same day.

50 – Bilateral procedure.

59 – Distinct procedural service.

22 – Increased service complexity.

52 – Reduced services.

TC – Technical component.

26 – Professional component.

Correct modifier use ensures clarity and prevents denials.

Outsourcing Medical Billing for Skin Tag Removal
Managing ICD-10 coding and billing for skin tag removal can be complex. Mistakes in coding or documentation often lead to claim rejections. By choosing outsourcing medical billing and coding services, practices gain:

Expert knowledge of ICD-10 and CPT codes.

Accurate application of modifiers.
Proper documentation aligned with payer policies.
Reduced denials and faster reimbursement.
Compliance with updated 2025 billing standards.
FAQs

Q1. Can inflamed or bleeding skin tags be billed differently?

Yes, codes like L98.8 or L91.8 apply depending on symptoms.

Q2. Is local anesthesia always billed separately?

No, it’s usually included unless monitored or general anesthesia is used.

Q3. Can skin tag removal be billed with other dermatology procedures?

Yes, but each procedure must be documented separately to avoid denials.

For More Information:

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