WhatsApp Image 2025-03-24 at 3.03.45 PM

What are ICD 10 Codes for Skin Tags? A Detail Guide

by Medical Billing

Dermatology medical billing is complex by virtue of the diversity of procedures, ranging from minor skin examinations to complex surgical and cosmetic procedures. The most daunting challenge is correctly identifying medically necessary procedures versus cosmetic procedures, which are not reimbursable.

Even just considering payment for removal of skin tags, several ICD-10 codes are at play—some of which will be reimbursed under an insurance payment plan, some not. If you are a dermatologist who has payment denials for removal of skin tags, this is how I will walk you through the key ICD-10 codes so that you bill appropriately and you can get the most pay.

Understanding Skin Tags

Skin tags, or acrochordons, are benign, soft growths that usually appear on the body where rubbing exists, including the armpits, eyelids, neck, and groin. They are also known as soft fibromas, cutaneous papillomas, skin tabs, or fibroepithelial polyps.

Although usually harmless, skin tags get inflamed, red, or sore in some cases and need to be excised. Proper documentation of ICD-10 coding enables medical care providers to bill and document such procedures correctly for seamless claim process and reimbursement.

Why ICD-10 Codes for Skin Tag Removal Are Important

proper use of ICD-10 code for skin tags ensures:

  • Accurate diagnosis and classification
  • Efficient documentation
  • Reimbursement justification when medically necessary removal
  • Enhanced treatment planning and coordination
  • Billable and non-billable removal distinction

Accurate coding not only optimizes billing processes but also enhances accurate diagnosis and facilitates simpler insurance approvals.

ICD-10 Codes for Skin Tag Removal: Billable or Non-Billable

It should be emphasized that one should distinguish reimbursable and non-reimbursable ICD-10 codes. There are the ones reimbursed by the insurance companies while others are non-reimbursable and cosmetic in intent and purpose and will necessitate out-of-pocket payment by the patient.

Billable ICD-10 Codes for Excision of Skin Tag

Some of the most commonly billable ICD-10 codes are the following:

L91.8 – Other Hypertrophic Disorders of the Skin

Use this code for any hypertrophic skin condition when no more specific code best defines the identified skin tag. As insurance companies value accuracy in coding highly, it is critical to document thoroughly about the skin tag’s site, characteristics, and symptoms.

D23.9 – Unspecified benign neoplasm of skin

This code is applied when a diagnosed skin tag has been identified as a benign neoplasm. It is a catch-all code and is only to be applied when no other more specific diagnosis has been made. It can be used to substantiate insurance reimbursement when applied with the proper procedural codes.

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

This ICD-10 code is used when skin tags need to be removed due to other skin or subcutaneous tissue disease. Providers need to provide extensive documentation that supports the medical necessity for removal in order to be approved.

K64.4 – Posthemorrhoid residual skin tags

This is for residual skin tags of hemorrhoids that occur after hemorrhoid healing. Where removal is indicated due to discomfort or pain, use with the procedural codes will be reimbursed. This code should be avoided, however, for chronic hemorrhoids.

Non-Billable ICD-10 Codes for Removal of Skin Tags

The following codes are generally not paid for because they are for either unrelated skin tag conditions or cosmetic conditions.

L72.3 – Miliaria rubra (heat rash)

Miliaria Rubra, or prickly heat, also referred to as heat rash, consists of tiny, elevated bumps as a result of sweat gland blockage. Though they might appear like skin tags on the surface, they are an independent condition and cannot be included under skin tag removal procedures.

L91.0 – Hypertrophic Scar

Hypertrophic scars are thick, elevated scars from excess collagen during the healing process. Although commonly called skin tags, they are a distinct skin condition and are not reimbursable by skin tag removal codes.

L72.0 – Epidermal Cyst

Epidermal cysts are sacs of skin cells that are filled with keratin and may appear anywhere on the body. Because they are usually excised for cosmetic purposes, they do not qualify for reimbursement under skin tag excision codes.

Conclusion

In summary, skin tags are benign growths that typically arise in areas of skin that are rubbing against one another, including the neck, armpits, eyelids, and groin. Proper use of ICD-10 codes ensures accurate diagnosis, thorough documentation, and hassle-free reimbursement for medically necessary excisions.

This guideline set standard billable ICD-10 codes (L91.8, D23.9, L98.8, K64.4) and non-billable codes (L72.3, L91.0, L72.0) so that you would be able to differentiate between billable procedures under insurance and direct patient payment procedures.

If dermatology billing is a burden, outsourcing to a reputable professional billing firm such as XyberMed can automate claim submission and increase reimbursement rates.

WhatsApp Image 2025-03-24 at 3.04.25 PM

TC Modifier in Medical Billing: Learn Proper Usage

by Medical Billing

Medical billing involves many complexities, and using the correct modifiers is key to getting paid correctly. One commonly used modifier is the TC (Technical Component) modifier, which separates the technical part of a medical service from the professional interpretation. However, using it incorrectly can lead to claim denials, audits, financial penalties, and even legal troubles. This guide simplifies the TC modifier, explaining when and how to use it to ensure smooth reimbursement.

What is the TC Modifier?

The TC modifier is used in medical billing to indicate that only the technical component of a procedure is being billed. This includes the costs related to equipment, supplies, technicians, and other resources required to perform a service. Reimbursement for the technical component also covers malpractice insurance and facility expenses.

Typically, payment for the technical component goes to the facility or entity responsible for providing the equipment and support staff.

When Should You Use the TC Modifier?

Here are some common scenarios where the TC modifier applies:

1. Surgical Pathology Testing

A surgeon removes a skin lesion and sends the specimen to a pathology lab for testing. The lab examines the sample using advanced staining and microscopy techniques.

  • The pathology lab bills CPT code 88305 with the TC modifier for performing the test and using specialized equipment.
  • The surgeon bills separately for the professional interpretation with modifier 26.

2. Esophageal Motility Study

A gastroenterologist orders an esophageal manometry study to assess a patient’s swallowing issues. A technician at the clinic performs the test, while the doctor later reviews and interprets the results.

  • The clinic bills CPT code 91013 with the TC modifier for conducting the test and using the necessary tools.
  • The gastroenterologist submits a separate claim for the interpretation with modifier 26.

3. Chest X-Ray for Persistent Cough

A patient with a chronic cough undergoes a chest X-ray at a hospital’s radiology department. The technician performs the X-ray, while a doctor later interprets the results and provides a report.

  • The hospital’s radiology department bills CPT code 71045 with the TC modifier for handling the technical component.
  • The physician separately bills the professional interpretation using modifier 26.

Billing Guidelines for the TC Modifier

To avoid claim issues, follow these essential TC modifier billing rules:

1. Use TC for the Technical Component

Only apply this modifier when a provider performs the procedure but does not interpret the results or prepare a report.

2. Don’t Use TC for Institutional Settings

In hospitals, outpatient facilities, or skilled nursing facilities (SNFs) covered under Medicare Part A, the technical component is already included in the facility’s billing and should not be billed separately.

3. Report TC in the First Modifier Field

Since TC is a pricing modifier, always list it first to ensure proper reimbursement.

4. Check the Medicare Physician Fee Schedule Database (MPFSDB)

Only append the TC modifier to procedures marked with a ‘1’ in the PC/TC column of the MPFSDB.

5. Applicable Procedure Types

The TC modifier applies to services related to surgery, lab tests, radiology, injections, assistant surgery, and radiation therapy.

6. Billing for Both Professional and Technical Components

If you purchase the technical component from another entity, you can bill both components by:

7. Listing the professional component on one claim line.

Listing the technical component on a separate claim line with the TC modifier.

8. Don’t Use TC When One Provider Performs Both Components

If the same provider performs both the technical and professional components, do not use the TC modifier.

9. Avoid TC for Procedures with a PC/TC Indicator of ‘2’

Some procedures include only a professional component and do not require a TC modifier. Check the MPFSDB column for a ‘2’ indicator.

10. Don’t Use TC for Global Services (Indicator ‘4’)

When the MPFSDB lists a procedure with a ‘4’ indicator, it means both components are already included, so TC is unnecessary.

11. Avoid TC for Procedures That Are Fully Technical (Indicator ‘3’)

Procedures that include only a technical component (marked as ‘3’ in the MPFSDB) do not require the TC modifier.

TC Modifier vs. Modifier 26: What’s the Difference?

Both TC and 26 modifiers help differentiate between technical and professional services:

  • Modifier 26 is used when a provider interprets the results and prepares a report.
  • Modifier TC is used when only the technical work (equipment, supplies, and technician services) is billed.

For example:

  • A radiologist reviewing an MRI scan bills modifier 26.
  • A hospital providing the MRI machine and technician bills modifier TC.

Conclusion

Using the TC modifier correctly helps ensure smooth reimbursements and fewer claim denials. Understanding when and how to apply it can prevent billing errors, avoid penalties, and improve revenue cycle efficiency.

By following the billing guidelines, checking MPFSDB indicators, and distinguishing between technical and professional components, healthcare providers can streamline their billing process.

Too busy to do that? We got you covered; hire XyberMed to handle this for you while you focus on patient’s care.

Medicare's 8 minute rule

Medicare’s 8-Minute Rule Explained

by Medical Billing

Are you a therapist struggling to cope with time-based service codes and the Medicare 8-minute rule? Worry no more, our billing specialists at XyberMed have put together this detailed guide to help you master it with ease!

In this guide, we’ll break down the Medicare 8-minute rule, its application, and walk you through examples where it’s applied. We’ve even given you a Medicare 8-minute rule chart to simplify your math and prevent errors when reporting therapy services.

Let’s dive right in then.

Understanding the Medicare 8-Minute Rule

The Medicare 8-minute rule is administered by the Centers for Medicare and Medicaid Services (CMS) and is applicable to the application of all time-based CPT codes, particularly in outpatient care like physical therapy.

Adopted in 2000 after it was initially launched in 1999, this regulation allows healthcare professionals to charge one service unit if they engage in at least 8 minutes of direct one-to-one interaction with the patient. One service unit is 15 minutes of therapy, and additional units are charged proportionately.

How to Calculate Billable Units Using the 8-Minute Rule

Providers must properly bill services under the 8-minute rule by breaking down the overall treatment duration and dividing it among billable units. Two of the most common methods are

  1. The 8-Minute Rule Method – Divide the minutes of service by 15. The integer is the fully billable units and the remainder determines the additional units based on the 8-minute rule.
  2. The “Start with Eight” Technique – One unit for 8-22 minutes of treatment, two units for 23-37 minutes, three units for 38-52 minutes, etc.

When does the Medicare 8-Minute Rule apply?

Here are some real-life examples of the 8-minute rule used in different therapy scenarios:

1. Auditory Processing Assessment

Suppose the 10-year-old is undergoing assessment for suspected auditory processing disorder. The healthcare provider conducts the initial 60-minute assessment that includes dichotic listening and speech-in-noise testing.

After the initial assessment, the audiologist then takes another 30 minutes (or two units of CPT code 92621) to perform special tests to assess the child’s capacity to process rapid auditory information and to localize sound. Here the Medicare 8-minute rule is applied to CPT 92621.

2. Iont

Let’s take the case of a patient with chronic shoulder pain who undergoes iontophoresis therapy. A physical therapist applies the iontophoresis device to the patient’s shoulder for 20 minutes while closely watching and readjusting the current as needed. Here, the therapist bills one unit of CPT code 97033 according to the Medicare 8-minute rule.

3. Aquatic Therapy

If the patient with osteoarthritis of the knee is given 30 minutes of aquatic therapy. During the course of the session, the physical therapist teaches the patient exercises like the range-of-motion exercises, lifting of the leg, and walking while in the water. Since the therapy is 30 minutes long, the provider charges two units of CPT code 97113 based on the Medicare 8-minute rule chart presented in this manual.

4. Orthotic Device Training

A physical therapist aids the patient in learning to accommodate a new ankle-foot orthosis (AFO). The patient is instructed in gait training, proper device fit, and donning/doffing the device by the therapist during a 30-minute visit. The practitioner bills two units of CPT code 97760 based on the Medicare 8-minute rule in this scenario.

5. Electroac

The acupuncturist administers electroacupuncture to treat the patient’s chronic neck pain. The practitioner inserts fine needles at specific acupoints on the neck and, with the use of electrical stimulation, administers the patient 20 minutes of treatment. According to the 8-minute rule, the acupuncturist bills one unit of CPT code 97813.

Common errors to avoid

Even the most seasoned providers make mistakes while applying the Medicare 8-minute rule. These are the most prevalent errors to watch out for:

  • Billing of non-direct services – Billing is done for direct patient contact minutes only.
  • Misreporting multiple timed services – If multiple therapies are performed during one session, report each of them individually and accurately.
  • Rounding up in error – You would include only complete 15-minute blocks and follow the 8-minute rule for extra minutes.

Wrapping Up

Let’s recap what we’ve covered so far:

  • Medicare 8-minute rule as implemented by CMS applies to time-based CPT codes used in outpatient services.

Physicians can charge at least 8 minutes of direct treatment time per unit.

We demonstrated a Medicare 8-minute rule chart and two calculation methods: the ‘long division’ approach and the ‘start with eight’ technique.

  • The examples utilized in practice included CPT 92621 for auditory processing, CPT 97033 for iontophoresis, CPT 97113 for aquatic therapy, CPT 97760 for training of the orthotic device, and CPT 97813 for

We discussed billing errors and what to avoid to not make them.

Understanding the 8-minute rule simplifies accurate billing and timely reimbursements. But if you are facing challenges with billing time-based service codes, then XyberMed is here to serve you. We provide our professional physical therapy billing services to ensure accurate claims and maximum reimbursement at competitive rates.

Looking for expert assistance? Speak to our billing professionals now!

 

cloud based EMR advantages

6 Advantages of Cloud Based EMR in Medical Practice

by Medical Billing

Are you a medical practitioner? Then you’re at the right place. Often you’d come across administrative tasks that is nerve taking. Between managing patient records, staying compliant with regulations, and keeping everything running smoothly, there’s a lot on your plate. And if you’re still using an outdated, on-site EMR system, you might be making things harder than they need to be.

But not anymore, cloud-based EMR systems are here and the market is growing with a ratio of 11.58% (CAGR) from 2022-2027.

In this blog, we will discuss top 6 advantages of cloud-based EMRs and how they can save you time, money, and a whole lot of headaches. By the end, you’ll see why more and more medical practices are making the switch — and why yours should too. Let’s dive in!

1. Cost-Effective and Budget-Friendly

Unlike traditional on-site systems that require costly servers, hardware, and maintenance, cloud-based EMRs operate online. This means you won’t need to spend thousands on physical infrastructure for maintenance.

Instead, you simply pay a subscription fee, which helps with budgeting and cost control. Plus, software updates and security patches are automatically handled by the provider — no extra fees, no stress.

2. Anywhere, Anytime Access

Following benefit is convenient access. Imagine having the ability to access patient records from anywhere when you’re always on the go. This is where a cloud-based EMR offers. Because everything is stored in the cloud, healthcare providers can access important information from any device with an internet connection.

This flexibility is a lifesaver for busy physicians who may need to review charts after hours or consult with other providers remotely. It also supports telehealth services, which have become increasingly popular.

3. Enhanced Data Security and Privacy

As of 2024, data security is the biggest concern in healthcare profession. Patient records contain sensitive information, and protecting that is a major responsibility. While it may seem argumentative but cloud-based EMRs are way more secure than on-site systems.

Do you know why? Cloud providers use advance technology to protect patient data like firewall, encryption, and multi-factor authentication. Similarly, they also conduct regular security audits and comply with regulations like HIPAA.

4. Scalable to Fit Your Practice’s Needs

Whether you’re running a small private practice or a growing healthcare network, a cloud-based EMR can grow with you. Unlike traditional systems that require additional hardware as you expand, cloud-based EMRs offer a “pay-as-you-go” model.

As your patient load increases or you add more providers to your team, you can easily scale up your system. This makes it ideal for practices looking to expand without the headache of overhauling their IT infrastructure.

5. Disaster Recovery and Backup

Medical record at physical infrastructure is always at risk. Natural disasters, power outages, or system failures can make you lose important patient records within a glimpse. However, a cloud-based EMRs can prevent that trouble for you by offering a built-in disaster recovery plan.

Cloud based data automatically back up data to multiple locations. In case of a local issue occurs, you can still access your records from another device making it all time convenient for you.

6. Improved Collaboration and Communication

Cloud-based EMRs help health providers to collaborate easily. Staff including physicians, nurses, specialists, and administrative staff can all access. This eliminate all the factors that led to poor communication. No more hunting down paper files or waiting for emails with attachments.

This instant access improves patient care and reduces the risk of miscommunication. When everyone is on the same page, treatment decisions are faster and more accurate.

Conclusion

Having a cloud based EMR can save health providers from the trouble of administrative tasks. Instead, it can provide real time analysis; from collecting patient info to submitting claims and tracking payments, the process becomes smooth between providers, insurance companies, and patients.

XyberMed offers robust cloud based EMR services to providers across US. For more information visit their website and get a quote now.