Specialty billing

Dermatology medical billing services

Lesion codes selected by millimetres, repairs that are separately billable but rarely billed, and a constant line between medical necessity and cosmetic exclusion.

Also called: Dermatologist · Skin Cancer · Mohs Surgery. We keep one page per specialty rather than a page per name.

Why dermatology billing is different

Dermatology codes are dimensional. An excision is selected by the lesion diameter plus the narrowest margins required, measured before excision — not by the size of the specimen after it shrinks in fixative. Practices that measure late, or measure the specimen, systematically code a size tier low across thousands of excisions a year. The clinical work is identical; the payment is not.

Destruction and biopsy codes are counted, not sized, and the counting rules differ. Premalignant destruction is billed as first lesion plus additional lesions in defined bands. Biopsies are billed as first lesion plus each additional, by technique — tangential, punch or incisional — and using one biopsy code for four lesions is one of the most common lost-revenue patterns in the specialty.

Repairs are the third piece. Simple repair is included in the excision. Intermediate and complex repair are separately payable, summed by length within the same anatomic grouping, and a great deal of that work is documented in the operative note and never reaches the claim.

Over all of it sits the cosmetic question. The same procedure on the same lesion is covered or excluded depending on documented symptoms, and the documentation has to exist before the claim, not after the denial.

Codes we work with

The families this specialty actually bills, and where each one carries a rule worth knowing.

Family Range Notes
Skin biopsy 11102–11107 Tangential, punch and incisional, each with an additional-lesion add-on
Destruction, premalignant 17000, 17003, 17004 First lesion, second through fourteenth, then fifteen or more
Destruction, benign and malignant 17110, 17111, 17260–17286 Counted by number and, for malignant, by size and site
Excision, benign lesions 11400–11471 By site and by excised diameter including margins
Excision, malignant lesions 11600–11646 By site and by excised diameter including margins
Repairs 12001–13153 Simple, intermediate and complex, summed by length within a site group
Mohs micrographic surgery 17311–17315 By stage and by number of blocks
Pathology 88304, 88305, 88312–88342 Component split where read by an outside laboratory
Injections and biologics J-codes, 96372, 96401 Drug product and administration billed separately, with wastage rules
[VERIFY] Coding specifics on this page must be confirmed by a certified coder before publication (specification §6.2).

Modifiers that matter

And the specific way each one is most often misused in this specialty.

Modifier Use Common error
25 Separate E/M on the same day as a procedure Omitted where a distinct evaluation occurred, so the visit is bundled away
59 / XS Distinct procedural service or separate site Not applied on separate lesions at separate sites, producing duplicate denials
LT / RT Laterality where the site is paired Left off, so bilateral lesion work reads as a duplicate
51 Multiple procedures Applied to add-on lesion codes that are exempt from the reduction
58 / 78 / 79 Staged or unrelated procedure in a global period Missing on a planned re-excision after positive margins
JW / JZ Drug amount discarded, or no amount discarded Not reported, which is now a claim requirement for single-dose products
[VERIFY] Coding specifics on this page must be confirmed by a certified coder before publication (specification §6.2).

Top denial reasons

With the CARC code you will see on the remittance, and what we do to stop each one recurring.

Denial CARC How we prevent it
Service considered cosmetic and not covered CO-96, CO-50 Symptom and functional documentation captured before the procedure
Multiple lesions read as duplicate claims CO-18 Site and laterality modifiers applied per lesion
Procedure bundled into the same-day visit CO-97 Modifier 25 applied where distinct evaluation is documented
Lesion size or site not documented CO-16 Pre-excision measurement captured in the template as a required field
Biologic therapy not authorised CO-197 Authorisation and re-authorisation tracked per drug and per interval
[VERIFY] Coding specifics on this page must be confirmed by a certified coder before publication (specification §6.2).

Prior authorisation in this specialty

Routine dermatologic surgery is not usually authorised in advance, but biologics are — and they dominate the authorisation workload in a modern dermatology practice. Systemic therapy for psoriasis, atopic dermatitis and hidradenitis typically requires documented step therapy, body surface area or severity scoring, and periodic re-authorisation. Phototherapy courses and some laser treatments carry their own criteria. We build the clinical package against the payer’s published criteria, track the authorised interval, and re-authorise before the course lapses.

Where revenue leaks

  • Excisions sized from the specimen rather than the lesion plus margins, coding a tier low every time
  • Additional-lesion biopsy and destruction add-on codes never billed
  • Intermediate and complex repairs documented in the note and absent from the claim
  • Drug wastage not reported on single-dose vials

What we do for dermatology practices

The parts of the cycle where this specialty gains the most, framed for how it actually bills.

Medical Coding

Certified CPC and CCS coders assign and validate ICD-10, CPT, and HCPCS codes from your documentation.

See medical coding

Medical Billing & Coding Audits

Retrospective and pre-bill audits that find both compliance risk and missed revenue.

See billing & coding audits

Prior Authorization Services

Auth requests submitted, tracked, and escalated so procedures aren't delayed.

See prior authorization

Denial Management & Appeals

Root-cause analysis, corrected claims, and clinical appeals filed inside payer deadlines.

See denial management
Proof

See what this specialty is losing in your practice

We run the analysis against dermatology benchmarks, not a generic template. Send 90 days of claims data and keep the report either way.

Get a free A/R analysis

Questions about dermatology billing

How do you determine excision size?

From the lesion diameter plus the narrowest margins required, measured before excision — not from the specimen after fixation.

Do you bill repairs separately?

Yes, where the repair is intermediate or complex. Simple repair is included in the excision.

How do you handle cosmetic versus medical necessity?

The symptom and functional documentation is captured before the procedure, so coverage is settled in advance rather than argued after a CO-96 denial.

Can you manage biologic authorisations?

Yes, including step therapy documentation, severity scoring and re-authorisation before the approved course lapses.

Find out what your practice is leaving on the table

Send us 90 days of claims data. We'll return a written analysis showing your denial rate, A/R ageing, and the specific revenue you're not collecting.

It's free, and you keep the report either way.