Also known as skin tabs or soft fibromas, skin tags are benign, non-cancerous tumors developing on the skin. They’re composed of fibers, ducts, fat cells, and nerve cells with a skin covering known as the epidermis. Mostly, they appear as soft, small, flesh-colored lumps hanging from the skin.
Skin tags are mostly harmless. However, if rubbed against jewelry or clothing, they can become inflamed or irritated. Most people don’t like these lesions and think they cloud their beauty and appearance. Hence, they opt to remove them for cosmetic purposes.
Some people may experience itching, irritation, or bleeding due to these tags. Hence, their removal becomes a medical necessity, and expert intervention is required to address the complications and discomfort. Most people experience skin tags on the neck, armpits, groin, eyelids, and under the breasts.
Key Facts About Skin Tags
Skin tags are painless and non-cancerous tumors visible as flesh-colored or slightly dark. Although they are harmless, some people still have them removed for cosmetic or comfort reasons.
Skin tags are:
- Tiny, soft, and mostly flesh or dark-colored lumps hanging from the skin
- Mostly found in middle-aged people or older adults
- Commonly experienced by overweight and diabetic patients
- Mostly found on skin folds or creases
- Removed using multiple methods like cutting, freezing, or burning
- Non-contagious and generally asymptomatic
People experiencing skin tags can monitor changes in the shape, color, and texture of these small lumps through self-examination. It helps identify unusual skin growths and provides a clear understanding of when medical intervention is necessary.
Other Names Used for Skin Tags in The Healthcare Industry
- Acrochordons
- Soft fibromas
- Fibroepithelial polyps
- Skin tabs
- Cutaneous papillomas
Usage of Correct ICD-10 Codes for Skin Tag Removal
When removing skin tags, healthcare providers must use accurate ICD-10-CM codes, as even the tiniest of mistakes in coding will lead to claims denials from insurers. Moreover, insurance companies do not pay if the skin tag removal is intended for cosmetic purposes. They only consider the claim in case the cause was backed up with medical reasons.
The correct ICD-10-CM code for skin tag removal is L91.8. There are other codes for skin tags too. Finding and reporting the precise ICD-10 code for skin tag removal is challenging. Other skin issues may seem like skin tags, but in reality, they are different. It is tricky because healthcare providers use L91.8 for other hypertrophic skin diseases without any specific skin tag diagnosis.
This is the exact reason why we’ve created this blog. It will enlighten you about billable and non-billable ICD-10 codes for skin tags and give a clear overview of the location-specific codes and their differences. In short, this guide will help healthcare specialists (and medical billers) ensure precise coding and enhance patient care.
Billable and Non-Billable ICD-10 Codes for Skin Tags
It is important to note that correct usage of ICD-10 codes for skin tags leads to ideal results for both the patient and the healthcare provider. It ensures the right diagnosis and treatment, complete and timely reimbursements, and necessary interventions. Some skin tag codes are billed for reimbursements, while the non-billable ones are specified only for cosmetic purposes.
Billable ICD-10 Codes for Skin Tags
When skin tag symptoms result in irritation, inflammation, or bleeding and require medical treatment, healthcare providers use billable codes. Following are the billable codes for skin tags with short clinical descriptions.
L91.8 – Other Hypertrophic Disorders of the Skin
L91.8 is a billable code and entails skin’s hypertrophic conditions used in general cases. It includes unspecified skin tags or irritated skin tags.
L98.8 – Other Specified Disorders for the Skin
L98.8 stands for inflamed skin tag and guarantees accurate documentation. It is used to differentiate between inflamed and bleeding skin tags.
D23.9- Benign Neoplasm of Skin, Unspecified
This code is used to specify benign growth of skin and covers unspecified skin tags. D23.9 is used to specify skin tags in different locations like back or face.
K64.4 – Residual Hemorrhoidal Skin Tags
Another billable code used to segregate perianal skin tags left after hemorrhoid treatment. ICD-10 code K64.4 is used to get reimbursements against related treatments.
Careful usage of these codes means precise medical documentation, accurate diagnosis, and complete payments for procedures related to skin tags.
Non-billable ICD-10 Codes for Skin Tags
Unlike billable codes that are used for medical treatments, non-billable codes are used to specify skin tag removal treatments for cosmetic purposes. Insurance providers don’t cover these skin tag removal treatments and don’t reimburse against them.
L72.3 – Miliaria Rubra
This condition is used to specify heat rash conditions similar to skin tags. However, their diagnosis and treatment are entirely different from skin tags.
L91.0 – Hypertrophic Scar
This non-billable code is used for raised scar tissue and is unassociated with skin tags. The ICD-10 code for Hypertrophic Scar isn’t considered valid for billing.
L72.0 – Epidermal Cyst
It refers to keratin-filled cysts that are wrongly considered skin tags. Same as L72.3 and L91.0, this code is deemed non-billable for skin tag procedures.
Note: Reporting non-billable codes in bills and trying to get the claim approved is wrong. The insurance company will deny it based on non-fulfillment of medical criteria.
Healthcare providers, and medical billers and coders must be careful when it comes to distinguishing non-billable codes from billable ones. It is the only way to avoid claim denials, ensure accurate documentation, and get proper reimbursements.
Other Frequently Used ICD-10-CM Codes for Skin Tags
As mentioned above, skin tags can appear on multiple body parts, i.e., neck, eyelid, face, groin, perianal area, ear, anus, and back. When creating claims for multiple skin tags, ICD-10 codes like L91.8 are used for generalized hypertrophic skin disorders.
Using these codes enables healthcare providers to correctly classify the treatments and get complete payment against them. Let’s now take you through some commonly used ICD-10-CM codes for skin tags based on location, symptoms, and conditions.
ICD-10 Skin Tag Codes Based On Location
L91.8 – Neck
This code refers to the skin tag on the neck and encompasses hypertrophic skin disorders, i.e., skin tags. It is billable based on medical necessity.
D23.9 – Eyelid
D23.9 stands for benign neoplasm of the skin and classifies skin tags found on the eyelid of the person. Same as L91.8, it is a billable code.
D23.9 – Face
It is applied when a person reports for a skin tag on the facial skin. Classified for benign neoplasms, D23.9 is also used for unspecified benign skin growths.
L91.8 – Groin
Used to specify hypertrophic disorders, L91.8 covers skin tags affecting the person in the groin area. These codes are billable under medical necessity.
D23.9 – Back
Healthcare professionals use this code to report skin tags on the back. It is also a billable code and is reimbursed by the payor if documented correctly.
ICD-10 Skin Tag Codes Based On Symptoms
L91.8 – Irritated
Irritation caused by friction or rubbing is covered using L91.8 under hypertrophic skin disorders. When documented symptoms justify the treatment, you can get reimbursement for it.
L98.8 – Inflamed
Healthcare providers use it to specify inflamed skin tags. It is classified as billable and coded under ‘other specified disorders of the skin.’
L98.8 – Bleeding
Bleeding skin tags are reported under ‘other specified disorders of the skin’. Like other codes based on symptoms, this code is also billable.
ICD-10 Skin Tag Codes Based on Condition
K64.4 – Rectal/Perianal
Providers use this code to specify residual hemorrhoidal skin tags in rectal or perianal regions. Insurance companies accept this code for related treatments.
L98.8 – Genital
Genital skin tags specified using L98.8 are included in ‘other specified disorders of the skin.’ Healthcare professionals can get payment against this code when treatment is necessary.
Labial – L98.8
Just like on genital areas, skin tags on labia are classified under ‘other specified disorders of the skin’.
Lastly, it is essential to understand that proper use of these skin tag codes leads to reliable planning, successful treatment, and claim approval for medically necessary interventions.
Tips for Coding Skin Tag Removal Procedure
The following are some tips or best practices to ensure complete and timely revenue generation against skin tag removal claims and avoid denials.
Thorough documentation
Healthcare professionals or anyone responsible for documentation must describe the size, location, and any related symptoms of skin tags. This is the first condition to get full reimbursement.
Establish Medical Necessity
Most insurances won’t pay if the procedure is done based on cosmetic reasons. Hence, it is vital to clearly document medical reasons for skin tag removal, i.e., bleeding or irritation.
Use The Most Relevant Code
Always report the medical condition using the most appropriate code that thoroughly describes the condition of the patient and why the treatment was necessary.
Combine The Precise CPT Codes
Not using the correct procedure codes will result in claim denials. To ensure an error-free claim, combine the correct procedure with ICD-10-CM diagnosis codes.
Stay up-to-date with The Latest Codes
Stay current with the latest updates of ICD-10. They’re changed, revised, and edited periodically. So, being acquainted with the coding guidelines helps you get paid on time.
Will Insurance Companies Reimburse You for Skin Tag Removal?
All insurance companies may not be on the same page when it comes to paying against skin tag removal. Usually, most insurers don’t pay if the removal was done for cosmetic purposes. They do reimburse against skin tag removal procedure claims in case it was medically necessary, and they were causing trouble to the person.
Issues Faced by Healthcare Practitioners When Coding for Skin Tags
Healthcare providers’ sole focus should be to provide exceptional patient care to visitors. They’re not supposed to spend hours on administrative tasks and report correct treatment codes. Coding for skin tag removal – when it is medically necessary – can be difficult for healthcare specialists and their in-house staff.
There are many codes that are similar in nature and may get mixed when used in a claim for submission and reimbursement against services rendered. It is a challenging task and requires specialized coding knowledge.
Only an experienced professional or a medical billing company can handle such intricate classifications without the chance of errors. Accurate coding for skin tags involves:
- Various skin tag types and codes assigned
- Proper reporting and medical necessity
- Correct use of modifiers
- Compliance with HIPAA regulations
- Fulfilling AAPC (American Academy of Professional Coders) guidelines
Ensuring Correct ICD-10 Coding for Skin Tags
Healthcare specialists or their teams may lack the knowledge and skill required for correct documentation and addressal of skin tag coding issues. Their inexperience may lead to unwanted results like denied claims and financial instability for your practice.
The best option is to hire a trustworthy and reputable medical billing services provider like I-Med Claims. At I-Med Claims, we’ll take care of all the complicated and laborious tasks like proper coding during claim creation, scrubbing, and timely submission.
We ensure complete and timely reimbursements against your medical services by maintaining industry standards.
Get in touch with our highly certified medical billing specialists.





