Benign skin lesions are common and are frequently removed at the
patient's request. Removal of certain benign skin lesions that do not
pose a threat to health or function are considered cosmetic, and as
such, are not covered by the Medicare program, under section 1862 (a)
(1) of the Medicare Law, and by many private insurances.
The following lesion removal policy applies to these skin lesions:
seborrheic keratoses, some moles, sebaceous (epidermoid) cysts, and
viral warts (excluding venereal warts [condyloma acuminatum].).
INDICATIONS AND LIMITATIONS OF COVERAGE:
There may be instances in which the removal of benign seborrheic
keratoses, sebaceous cysts and viral warts is medically appropriate.
Your insurance will therefore consider their removal as medically
necessary, and not cosmetic, if one or more of the following
conditions is presented and clearly documented in the medical record:
1. The lesion has one or more of the following characteristics:
bleeding, intense itching, or pain.
2. The lesion has physical evidence of inflammation, e.g.,
purulence, oozing, edema, redness.
3. The lesion obstructs an orifice or clinically restricts vision.
4. There is clinical uncertainty as to the likely diagnosis,
particularly where malignancy is a realistic consideration based on
lesion appearance.
5. A prior biopsy suggests or is indicative of lesion malignancy.
6. The lesion is in an anatomical region subject to recurrent
physical trauma and there is documentation that such trauma has, in
fact, occurred.
REASONS FOR NON-COVERAGE:
Benign-skin lesion removals for reasons other than those given
under "Indications and Limitations of Coverage" above are
considered cosmetic and will not be covered. These reasons include,
but are not limited to, emotional distress, "makeup
trapping", and non-problematic lesions in any anatomical
location. Lesions in sensitive anatomical locations, but which are not
clinically problematic, do not qualify for coverage of removal on the
basis of location alone.
If you wish one or more of these benign asymptomatic lesions
removed for cosmetic purposes, you become liable for the service
rendered. The physician has the responsibility to notify you in
advance that your insurance or Medicare will not cover cosmetic
dermatologic surgery and that you will be liable for the cost of the
service.
A claim need not necessarily be submitted to Medicare or your
private insurance for this service unless you believe your
supplementary insurance coverage that will pay for the service after a
formal denial is issued. If a claim is filed, we must use ICD-9 code
V50.1 - "Other plastic surgery for unacceptable cosmetic
appearance" - in conjunction with HCPCS code A9270 -
"Non-covered item or service," to ensure denial.