ICD 10 Codes for Skin Tags CPT Codes and Billing Guide 2026 

Skin tags, also called acrochordons, are common benign growths that often develop on the neck, axillae, groin, eyelids, and other friction-prone areas. Billing becomes more complex when diagnosis coding, medical necessity, cosmetic exclusions, lesion counts, and payer requirements do not align.

For practices, accurate dermatology billing starts with selecting the ICD 10 code that reflects the documented lesion and confirming that the procedure and medical record support reimbursement.

Importance of ICD 10 Codes for Skin Tags

ICD-10 CM  coding identifies the condition that led to evaluation or removal. A valid diagnosis code alone does not make a skin tag procedure payable. The documentation must support both the diagnosis and the reason for treatment.

Accurate skin tag dermatology coding helps practices:

• Distinguish medically necessary treatment from cosmetic removal
• Reduce diagnosis and procedure mismatches
• Support payer medical necessity review
• Improve clean claim accuracy
• Identify noncovered cosmetic services
• Maintain consistency between the clinical record and claim

A useful dermatology coding principle is simple:

Code the condition documented by the dermatologist, not the diagnosis most likely to pass a payer edit.

Common ICD 10 Codes for Skin Tags

Several ICD-10 CM codes may appear in encounters involving skin tags or similar benign lesions, but they should not be treated as interchangeable.

ICD-10 Code	Description	Coding Consideration
L91.8	Other hypertrophic disorders of the skin	Commonly associated with ordinary cutaneous skin tags
D23.9	Other benign neoplasm of skin unspecified	Benign skin neoplasm when appropriately documented
L98.8	Other specified disorders of the skin and subcutaneous tissue	Applies to appropriately documented specified skin disorders
K64.4	Residual hemorrhoidal skin tags	Specific to anal or residual hemorrhoidal skin tags

Among these, L91.8 is commonly used for ordinary cutaneous skin tags. The remaining codes should be selected only when the dermatologist’s documentation supports the condition described by the code.

ICD-10 Codes Used in Skin Tag Billing 

The term billable requires an important distinction. A billable ICD-10 CM code is sufficiently specific for claim submission. That does not mean every procedure reported with the code will be covered. Reimbursement still depends on documentation, medical necessity, patient benefits, and payer policy.

L91.8 Other Hypertrophic Disorders of the Skin

L91.8 is commonly used when the dermatologist documents an acrochordon or ordinary cutaneous skin tag.

When medical necessity affects coverage, the record should also document the clinical reason for removal, which may include:

• Recurrent bleeding
• Pain or tenderness
• Inflammation
• Repeated trauma
• Functional interference

CMS benign lesion guidance requires the medical record to clearly support the medical necessity for removal.

Coding Example

A patient has three pedunculated skin tags on the neck that repeatedly catch on clothing and bleed.

If the dermatologist documents the lesions as skin tags, L91.8 may represent the diagnosis. The note should separately describe the recurrent trauma and bleeding that explain why treatment was performed.

D23.9 Other Benign Neoplasm of Skin Unspecified

D23.9 describes another benign neoplasm of the skin when the site is unspecified.

It should not automatically replace L91.8 for a confirmed skin tag. If the dermatologist documents a benign neoplasm and the diagnosis fits this category, D23.9 may be relevant.

Where the documentation identifies a more specific site or condition, the most accurate supported diagnosis should be selected rather than defaulting to an unspecified code.

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

L98.8 is a broader diagnosis for other specified disorders of the skin and subcutaneous tissue.

It should not be used simply because a skin tag is inflamed, bleeding, genital, or located at another particular site. The provider must document a condition that appropriately supports L98.8.

K64.4 Residual Hemorrhoidal Skin Tags

K64.4 applies specifically to residual hemorrhoidal skin tags.

Appropriate: A documented residual hemorrhoidal or anal skin tag
Not appropriate: A routine cutaneous skin tag on the neck, axilla, eyelid, or another unrelated location

Codes Commonly Confused With Skin Tag ICD-10 Coding

Some valid ICD 10 codes describe benign skin conditions that can be confused with skin tags. These codes are billable, but they should not be used for an ordinary skin tag unless the documented diagnosis actually matches the code.

Code	Condition	Why it Should Not Replace a Skin Tag Diagnosis
L72.3	Sebaceous cyst	A cyst is clinically different from an acrochordon
L91.0	Hypertrophic scar	Represents hypertrophic scar or keloid
L72.0	Epidermal cyst	Represents an epidermal cyst rather than a skin tag

A code can be valid for claim submission while still being inaccurate for the lesion being treated. 

Skin Tag ICD-10 Coding by Location and Clinical Scenario

Location and symptoms can influence documentation and code selection, but they should not determine the diagnosis by themselves.

Clinical Scenario	Potential Coding Consideration	Key Point
Neck	L91.8 may apply	Appropriate when documented as an ordinary cutaneous skin tag
Irritated skin tag	L91.8	Used when the diagnosis remains a skin tag.
Inflamed lesion	Depends on documented diagnosis	May apply when documented as another specified skin disorder.
Eyelid	Diagnosis and site specificity matter	Do not default to D23.9 based only on location
Face	Diagnosis and site specificity matter	Code the documented condition and anatomical site
Axilla	L91.8 may apply	Common when documented as an acrochordon
Bleeding skin tag	Primary diagnosis plus clinical support	Bleeding alone does not automatically indicate L98.8
Anal or perianal	K64.4 when appropriately documented	Applies to residual hemorrhoidal skin tags
Groin	L98.8 may apply	Appropriate when documented as an ordinary skin tag
Genital or labial	Depends on documented diagnosis	Do not default to L98.8 based on location

The correct code is determined by the documented condition, not simply by whether a code appears on a payer’s benign lesion diagnosis list.

Key Factors in Billing for Skin Tag Removal

ICD-10 coding is only one component of a correctly submitted skin tag claim.

Medical Necessity

Asymptomatic skin tags removed for appearance are generally considered cosmetic.

When coverage is requested, documentation should explain the medical reason for removal, such as recurrent trauma, bleeding, pain, inflammation, or functional interference when applicable.

Lesion Count and CPT Coding

CMS guidance states that:

• CPT 11200 is reported with one unit for removal of up to 15 skin tags
• CPT 11201 is reported for each additional group of 10 lesions or part thereof

Quick Coding Example

Lesions Removed	CPT Reporting
12	11200
18	11200 plus one unit of 11201
27	11200 plus two units of 11201

The procedure note should contain an exact lesion count rather than simply stating that multiple skin tags were removed.

Diagnosis and Procedure Alignment

The ICD 10 diagnosis should describe the lesion actually treated.

A cyst, scar, or unrelated benign lesion diagnosis should not be paired with skin tag removal simply because both codes are individually billable.

Cosmetic Versus Covered Services

CMS considers benign asymptomatic lesion removal performed solely for cosmetic purposes noncovered. Payer rules should be verified before the procedure and the patient should understand potential financial responsibility.

Payer Requirements

Medicare Administrative Contractors and commercial health plans may apply different coverage and documentation requirements. A diagnosis accepted under one policy should not automatically be assumed to satisfy another.

Comparison of Appropriate and Commonly Misapplied ICD 10 Codes for Skin Tags 

Category	Codes Relevant when Documentation Supports Them	Codes Commonly Misapplied to Skin Tags
ICD 10 Codes	L91.8 D23.9 L98.8 when clinically appropriate	L72.3 Sebaceous cyst, L91.0 Hypertrophic scar, and L72.0 Epidermal cyst
Clinical Use	Must represent the documented lesion	Describe cysts scars or other conditions
Medical Necessity	Coverage depends on symptoms findings and payer criteria	A valid diagnosis does not make it appropriate for skin tag removal
Documentation	Should support lesion type location and reason for treatment	Creates risk when the diagnosis conflicts with the record
Coverage	Reimbursement depends on medical necessity, benefits, and payer policy	Claims may be denied when the diagnosis and procedure do not align
Special Situation	K64.4 may apply to residual hemorrhoidal or anal skin tags	K64.4 should not be used for routine skin tags elsewhere on the body
Cosmetic Removal	Follow applicable payer rules for noncovered treatment	Cosmetic removal should not be represented as medically necessary treatment

The central distinction is whether the diagnosis accurately represents what the dermatologist documented and treated. 

Top Coding Mistakes That Cause Skin Tag Claim Denials

Using L91.8 Without Medical Necessity Support

L91.8 may identify the condition, but it does not explain why removal should be covered. 

Using Broad Codes When Documentation Is Incomplete

D23.9 and L98.8 should not become fallback codes simply because the note lacks specificity. 

Confusing Skin Tags With Cysts or Scars

L72.0, L72.3, and L91.0 describe different conditions and should not substitute for a documented acrochordon. 

Missing the Exact Lesion Count

CPT 11200 and 11201 depend on the number of lesions removed.

Billing Cosmetic Removal as Covered Care

A billable diagnosis does not convert an elective cosmetic procedure into medically necessary treatment.

Adding Symptoms Only to Obtain Coverage

Pain, bleeding, irritation, or other symptoms should appear on the claim only when supported by the encounter and coding rules. 

Ignoring Payer Specific Rules

Coverage criteria can vary between Medicare jurisdictions and commercial health plans.

Modifiers Used for Skin Tag Removal in Medical Coding

Modifiers should reflect the documented circumstances rather than being routinely added to claims. 

Modifier 25

Modifier 25 may apply when a significant and separately identifiable E and M service is performed on the same day as the skin tag procedure.

The modifier belongs on the E and M code. DermatologyBilling365 also provides detailed guidance on Modifier 25 dermatology billing.

Modifier GY

Modifier GY may be relevant to Medicare services that are statutorily excluded from coverage, including applicable cosmetic services. The claim circumstances and current CMS requirements should be verified before use. 

Modifier GA

Modifier GA may apply when Medicare is expected to deny a service as not reasonable and necessary and a valid Advance Beneficiary Notice has been issued according to Medicare requirements. GA and GY should not be treated as interchangeable. 

Modifier 59 and X Modifiers

Modifier 59 or an applicable X modifier may be appropriate when a truly distinct procedure is performed and documentation supports bypassing an applicable edit.

These modifiers should never be added simply to force a claim through a bundling edit

Skin Tag Billing Checklist

Before submitting a skin tag removal claim, confirm that:

• The lesion diagnosis is clearly documented
• The ICD 10 code matches the documented condition
• Medical necessity is supported when required
• The anatomical location is recorded
• The exact lesion count is documented
• CPT 11200 and 11201 units are correct
• Cosmetic exclusions have been identified
• Modifier use is supported
• Payer specific requirements have been checked

Building a More Reliable Dermatology Revenue Cycle

Skin tag billing becomes difficult when similar benign lesions, symptoms, cosmetic services, and payer requirements are treated as interchangeable. Strong claims keep diagnosis coding, lesion count, medical necessity, CPT reporting, modifiers, and documentation aligned.

DermatologyBilling365 helps dermatology practices strengthen coding accuracy, reduce preventable denials, and maintain more consistent reimbursement through specialty focused dermatology billing and coding support.

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