ICD-10 Codes for Skin Tag Removal: Complete Billing Guide for 2025

Skin tags are benign growths on the skin that are medically known as acrochordons. These small, flesh-colored lesions are generally harmless and often appear in areas where the skin experiences friction, such as the neck, armpits, groin, and eyelids. Although skin tags are usually harmless, they can sometimes become irritated, inflamed, or even bleed for making removal necessary for medical reasons.

Proper coding of skin tag removal procedures is important for accurate medical documentation and billing. Using the correct ICD-10 codes ensures that healthcare providers can justify medical necessity, streamline insurance claims, and prevent claim denials.

This blog will provide a complete guide on ICD-10 coding for skin tag removal in 2025.

Steps to Ensure Correct ICD-10 Coding for Skin Tag Removal

Correct ICD-10 coding is essential for proper documentation, billing and insurance reimbursement when removing skin tags. Here is a step-by-step guide-

Step 1: Identify Correct Skin Tag Type and Location

The first step is to accurately identify the type of skin tag and its precise location on the body. In fact, different types and locations of skin tags correspond to different ICD-10 codes which are crucial for accurate billing.

• Billable ICD-10 Codes

These codes are used when skin tags require medical attention due to irritation, bleeding, or other health concerns. Accurate use ensures proper documentation, supports medical necessity, and allows for insurance reimbursement when the removal procedure is justified.

• L91.8 – Other Hypertrophic Disorders of the Skin

This code is used for skin conditions characterized by abnormal thickening of the skin, which includes general skin tags (acrochordons). It is most appropriate when skin tags appear in common areas such as the neck, axilla, groin, or back and present with symptoms like irritation, inflammation, or bleeding.

• D23.9 – Benign Neoplasm of Skin, Unspecified

D23.9 is used for benign skin growths, including skin tags, that are not further specified. This code is suitable when the lesion is diagnosed as a benign neoplasm without additional classification, such as facial or unspecified areas.

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

This code covers various skin and subcutaneous tissue disorders, including skin tags that are inflamed, irritated, or bleeding. L98.8 is used when skin tags are part of a broader skin condition requiring removal.

• K64.4 – Residual Hemorrhoidal Skin Tags

K64.4 refers to skin tags that remain after hemorrhoid treatment usually in the perianal area. This code applies when residual tags cause discomfort, irritation, or hygiene issues following hemorrhoid resolution.

• Non-Billable ICD-10 Codes

These codes refer to conditions that may resemble skin tags but are not medically necessary for removal, such as heat rash, cysts, or scars. Using these codes for skin tag removal will not be reimbursed and should be avoided to prevent claim denials.

• L72.3 – Miliaria Rubra (Heat Rash)

Miliaria rubra, also known as heat rash or prickly heat, happens when sweat glands get blocked. This causes small, red, itchy bumps to appear on the skin. This is a rash and not a skin tag.

• L91.0 – Hypertrophic Scar

A hypertrophic scar is a thick, raised scar that forms when the body produces too much collagen during healing. These scars may appear firm and red, but they are different from soft, small skin tags.

• L72.0 – Epidermal Cyst

An epidermal cyst is a harmless, closed sac under the skin filled with keratin. It can appear as a small lump anywhere on the body. Even though it may look like a skin tag, it is a different condition.

Step 2: Confirm Medical Necessity

Before coding and billing for skin tag removal, it is essential to confirm that the procedure is medically necessary. Insurance companies usually cover removal only if the skin tags cause health-related issues or interfere with daily activities. However, simply removing skin tags for cosmetic purposes will not be reimbursed.

• Skin Tags Causing Pain, Bleeding, or Inflammation

Medical necessity is established when skin tags cause physical discomfort. This can include pain from friction with clothing or jewelry, bleeding when irritated or inflammation due to repeated rubbing. Documenting these symptoms clearly ensures that the procedure qualifies for insurance coverage.

• Skin Tags Interfering with Daily Activities

Skin tags may sometimes affect a patient’s routine activities. For example, they can make hygiene difficult, cause irritation when dressing, or limit movement if located in areas like the underarms or groin. Insurance companies may approve removal when these issues significantly affect the patient’s quality of life.

• Skin Tags at Risk of Infection or Recurrent Irritation

Skin tags located in areas prone to friction or moisture may develop recurrent irritation or an increased risk of infection. This includes tags in folds of skin, under breasts, or around the neck and groin. Documenting the risk of infection or repeated irritation supports medical necessity and justifies coding for insurance reimbursement.

Step 3: Documentation

Proper documentation is one of the most important steps in coding skin tag removal procedures. Every aspect of the patient’s condition and the procedure should be carefully recorded to avoid errors and claim denials.

• Clinical Notes

When documenting clinical notes, healthcare providers should record the number, size, location, and appearance of all skin tags. It is important to note any symptoms such as pain, irritation, bleeding or inflammation as these details are critical for establishing medical necessity. Additionally, any relevant medical history should be included such as previous hemorrhoid treatments when residual skin tags are present. Thorough clinical notes make it easier for coders to select the correct ICD-10 code and increase the chances of insurance reimbursement.

• Procedure Details

Healthcare providers should also document the exact method of skin tag removal, whether it is excision, cryotherapy, or cauterization. It is essential to specify if anesthesia was used and what type was administered such as local, general or monitored anesthesia care. In fact, providers should record any complications that occurred during the procedure and describe any follow-up care or instructions provided to the patient. This detailed documentation ensures that procedural codes are accurately applied, medical necessity is clearly demonstrated, and patient records are complete for future reference.

Step 4: Apply Modifiers if Needed

Modifiers are essential for coding skin tag removal procedures. They adjust CPT codes to reflect specific circumstances, such as the number of lesions removed or special procedural conditions.

• CPT Codes for Skin Tag Removal

CPT codes are used to describe the specific procedure performed during skin tag removal. These codes ensure that the procedure is documented and billed correctly for insurance reimbursement.

11200 – Removal of up to 15 skin tags in a single session.

11201 – Removal of each additional 10 skin tags beyond the first 15.

• Anesthesia Codes

Anesthesia codes are used when anesthesia is administered during the procedure and help to ensure proper billing for all aspects of care. They reflect the type and complexity of anesthesia provided.

00100 - 01999 – Use these codes if anesthesia is administered during the procedure. The specific code depends on the type of anesthesia (local, general, or monitored).

• Commonly Used Modifiers

Modifiers are added to CPT codes to clarify additional circumstances or the complexity of the procedure. Using modifiers accurately helps prevent claim denials and communicates specific procedural details to insurance payers.

25 – Significant, separately identifiable evaluation and management service on the same day.

50 – Bilateral procedures.

59 – Distinct procedural service.

22 – Increased procedural services.

52 – Reduced services.

TC – Technical component.

26 – Professional component.

Outsourcing Medical Billing for Skin Tag Removal

Managing ICD-10 codes for skin tag removal can be complicated, especially when trying to ensure accurate documentation and proper reimbursement. Outsourcing medical billing and coding services to 24/7 Medical Billing Services can help healthcare providers streamline their billing and coding processes.

Professional billing services have expertise in correctly applying ICD-10 codes, distinguishing between billable and non-billable procedures, and using the appropriate modifiers. They also ensure that documentation meets insurance requirements to reduce the risk of claim denials. Outsourcing also allows practices to stay updated with the latest 2025 coding standards and insurance policies without investing additional resources in training or in-house coding teams.

FAQs

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

Codes like L98.8 or L91.8 apply depending on symptoms and documentation.

Q2. Is local anesthesia always included in skin tag removal billing?

Local anesthesia is usually included in the procedure unless monitored or general anesthesia is required.

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

Yes, but documentation must clearly differentiate each procedure to avoid denials.