Dermatology medical billing is known for its intricacy due to various factors. First, it has a vast array of procedures, from routine skin checkups to complex cosmetic treatments to surgical procedures. Besides, coding is complex because you have to distinguish between medically necessary treatments and non-reimbursable cosmetic procedures.
Even if we limit our talk to skin tag removal, you will find several diagnosis ICD-10 codes. Some are billable, others not. This guide will cover everything you need to know about the ICD-10 codes for skin tags removal.
Therefore, if you are a dermatologist facing claim denials related to skin tag removal, you should read this guide till the end!
What are Skin Tags?
Skin tags are also known as skin tabs, soft fibromas, fibroepithelial, and cutaneous papillomas. However, acrochordon is the medical term for skin tags, which are soft and benign growths, generally appearing on body areas prone to friction, such as the groin, eyelids, armpits, and neck.
These growths are typically harmless, small, and flesh-colored. However, they may sometimes become painful, irritated, or inflamed, requiring medical attention.
ICD-10 codes for skin tags offer healthcare professionals a standardized approach to classify, document, and treat skin tags, ensuring consistency and accuracy in medical billing.
For healthcare professionals, ICD-10 codes provide a standardized way to document, classify, and treat skin tags, ensuring accuracy in medical records and billing.
Importance of ICD 10 Codes for Skin Tags
ICD-10 codes for skin tags enable clinicians to distinguish skin tags from other skin-related issues, leading to the following benefits:
- Accurate diagnosis of the condition
- Efficient medical documentation
- Reimbursement facilitation for medical removals
- Streamlined treatment planning and communication
- Differentiation between billable and unbillable skin tag removal
Simply put, healthcare providers rely on these standardized ICD-10 codes to enhance insurance reimbursement workflow, diagnosis efficiency, and treatment planning.
Common ICD 10 Codes for Skin Tags
Before discussing the most common ICD-10 codes for skin tags, understand that there are two types; billable and non-billable. That is, there are some ICD-10 codes that you can report to get reimbursement for skin tag removal due to medical reasons. Thus, reporting these billable codes with relevant CPT codes will help you receive your rightful reimbursement.
Conversely, some ICD-10 codes for skin tags lack the medical necessity for removal and are non-billable. These codes correspond to asymptomatic acrochordons. Insurance payers do not reimburse skin tag removal performed solely for cosmetic reasons. Thus, healthcare practitioners must inform the patient that since the service is not covered by the insurance company, they will be liable to pay out-of-pocket for the removal of acrochordons.
Billable Skin Tag Removal ICD-10 Codes
Discussed below are a few commonly used billable ICD-10 codes for skin tag removal:
L91.8 for Other Hypertrophic Disorders of the Skin
This code represents other hypertrophic skin disorders and is often used when no other available code describes the diagnosed skin tag.
Note that the ICD-10 L91.8 is a generic code, and insurance companies emphasize coding specificity and accuracy. Thus, if another code describes the diagnosed acrochordon condition, prioritize using it.
However, if no other code describes the diagnosis, include clear notes in the medical record stating the same. Other details you should provide in the documentation while reporting L91.8 include skin tag description, location, and related symptoms.
D23.9 for Benign Neoplasm of Skin, Unspecified
The benign neoplasm of skin, unspecified, D23.9 is another commonly used ICD-10 code for skin tags. You may use it when the diagnosed skin tag is explicitly identified as a benign neoplasm. Besides, it is a general code that is not classified further.
Thus, if a patient visits the office with a benign neoplasm, you can report this code for diagnosis and even charge the insurance payer for removing the skin tag when coupled with the relevant CPT code since it is one of the billable codes.
L98.8 for Other Specified Disorders of the Skin and Subcutaneous Tissue
This billable skin tag removal ICD-10 code is used to report a diagnosis of other specified disorders of the skin and subcutaneous tissue. You can use it with the relevant procedural code to bill the skin tag removal as a result of this diagnosis since it is medically necessary and reimbursable by insurance payers.
The ICD-10 code L98.8 covers various tissue and skin-related concerns, and skin tags are just one of them. Thus, clinicians reporting this code must ensure documentation completeness to provide adequate information to the payer for what diagnosis this code is being reported.
K64.4 for Residual Hemorrhoidal Skin Tags
This code is used to report the diagnosis of residual hemorrhoidal skin tags. In this condition, loose pieces of skin remain after hemorrhoids are treated or disappear. Simply put, this loose skin is not hemorrhoids but a residual or byproduct of the healing process.
Hemorrhoids are enlarged bulging blood vessels that develop inside the rectum or under the skin around the anus. This type of skin tag may cause irritation, feel uncomfortable, or require removal.
Thus, if a patient is diagnosed with this skin condition and requires skin tag removal, use ICD-10 for skin tag code K64.4, the relevant CPT code, and clear notes about the patient’s medical history, physical exam results, and other test reports to ensure you receive the rightful reimbursements.
However, if the patient has active hemorrhoids or other issues with the anus or rectum, avoid using this code.
Non-Billable Skin Tag Removal ICD-10 Codes
The following are some of the non-billable ICD-10 codes for skin tags removal:
L72.3 for Miliaria Rubra
It is one of the non-billable ICD-10 codes for skin tag removal used to report the diagnosis of Miliaria Rubra, which means ‘heat rash’ or prickly heat’. These are also referred to as sebaceous cysts.
This condition may seem relevant to bill the insurance payer initially since it has small, raised bumps that look like skin tags. However, it is a kind of heat rash that occurs when sweat glands are blocked, trapping perspiration under the skin.
Individuals typically experience this condition in humid and hot places due to excessive sweating. Besides, if we talk about the appearance of the Miliaria Rubra, it is a group of red, itchy blisters or bumps.
One of the reasons that this code is not billable for skin tag removal is that Miliaria Rubra is not related to skin tags. Therefore, you cannot report the ICD-10 code L72.3 to bill the skin tag removal, but you can use it for accurate documentation and billing of cases related to heat rash or prickly heat.
L91.0 for Hypertrophic Scar
Another commonly used ICD-10 code is L91.0. It identifies hypertrophic scars, which are thick and raised and develop during the healing process of skin inflammation, surgery, injury, or burn due to excessive collagen. Most of the time, these scars can be mistaken for skin tags, but in reality, they are a different skin condition and cannot be reimbursed.
L72.0 – Epidermal Cyst
This code is for diagnosing epidermal cysts, but you cannot report it to bill skin tag removal. When a patient is diagnosed with an epidermal cyst, i.e., a type of skin cyst covered with skin cells filled with keratin, the healthcare practitioner may report the diagnosis using L72.0.
However, remember that these cysts can appear anywhere on the body and are generally removed for cosmetic reasons. Thus, you cannot get reimbursement against this ICD-10 code for skin tag removal.
Summary
It is time to wrap up this guide by summarizing the key takeaways! This guide explained that skin tags are small, soft growths on the skin, which are usually harmless and often appear on armpits, neck, eyelids, and groin.
Besides, we discussed the importance of ICD-10 codes for skin tags, including facilitating accurate diagnosis of the skin condition, ensuring efficient medical documentation, enabling reimbursement for medically necessary removals of skin tags, improving treatment planning, and differentiating between billable and non-billable skin tag removal.
Moving forward, we shared some of the most commonly used billable (L91.8, D23.9, L98.8, K64.4) and non-billable (L72.3, L91.0, L72.0) ICD-10 codes related to acrochordons.
We hope this guide will equip you with the necessary knowledge to ensure accurate reporting of skin tags removal. However, if you find it challenging, why not outsource dermatology billing services to billing specialists at MediBillMD?
