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LCD L35498: Removal of Benign Skin Lesions

LCD L35498, Removal of Benign Skin Lesions, is the Local Coverage Determination that Wisconsin Physicians Service Insurance Corporation applies to claims from 48 states (AK, AL, AR, AZ, CA, CO, CT, DE and others), effective 2025-10-30 and first in force 2015-10-01. The policy text runs 710 words, and its billing and coding article A57482 lists 134 ICD-10-CM codes that support medical necessity for 37 procedure codes. 2 other contractors publish a policy with the same title, so the criteria that apply depend on where the service is furnished.

QuickIntell editorial content · Legacy registry date · Review not verified

Data effective
Data currency: Medicare Coverage Database LCD export release of September 24, 2026 (effective September 20, 2026). Next CMS release: weekly (Thursdays) for the MCD.
Contractor
Wisconsin Physicians Service Insurance Corporation
States and territories
48
AK AL AR AZ CA CO CT DE FL GA HI IA ID IL IN KS KY LA MA MD ME MI MO MS MT NC ND NE NH NJ NM NV OH OK OR PA RI SC SD TN TX UT VA VT WA WI WV WY
Revision effective
2025-10-30
Original effective
2015-10-01
Policy text
710 words
Covered ICD-10 codes (articles)
134

Where this LCD applies

Each contract number is a jurisdiction on the remittance; the policy binds claims processed under these contracts and no others.

Contracts that apply LCD L35498
ContractContractorTypeStates
05101Wisconsin Physicians Service Insurance CorporationMAC - Part AIA
05201Wisconsin Physicians Service Insurance CorporationMAC - Part AKS
05301Wisconsin Physicians Service Insurance CorporationMAC - Part AMO
05401Wisconsin Physicians Service Insurance CorporationMAC - Part ANE
05102Wisconsin Physicians Service Insurance CorporationMAC - Part BIA
05202Wisconsin Physicians Service Insurance CorporationMAC - Part BKS
05302Wisconsin Physicians Service Insurance CorporationMAC - Part BMO
05402Wisconsin Physicians Service Insurance CorporationMAC - Part BNE
08101Wisconsin Physicians Service Insurance CorporationMAC - Part AIN
08102Wisconsin Physicians Service Insurance CorporationMAC - Part BIN
08201Wisconsin Physicians Service Insurance CorporationMAC - Part AMI
08202Wisconsin Physicians Service Insurance CorporationMAC - Part BMI
05901Wisconsin Physicians Service Insurance CorporationMAC - Part AAK AL AR AZ CA CO CT DE FL GA HI IA ID IL IN KS KY LA MA MD ME MI MO MS MT NC ND NE NH NJ NM NV OH OK OR PA RI SC SD TN TX UT VA VT WA WI WV WY

Billing and coding: diagnoses and procedure codes

Since 2019 the codes live in the companion article rather than the LCD. Billing and Coding A57482 (Billing and Coding: Removal of Benign Skin Lesions) carries the diagnosis and procedure lists the contractor loads as the claims edit. CPT codes are shown as bare numbers because the descriptors are licensed by the AMA; HCPCS Level II descriptors are public and shown.

A57482: Billing and Coding: Removal of Benign Skin Lesions (Billing and Coding, effective 2026-07-30)

Covered ICD-10-CM codes
134
1 group
Non-covered ICD-10-CM codes
1
Procedure codes listed
37
Full article
cms.gov record
First 24 covered ICD-10-CM codes in A57482
ICD-10-CMDescription (FY2027)
A63.0—
B07.0—
B07.8—
B07.9—
B08.1—
D10.0—
D10.39—
D17.0—
D17.1—
D17.21—
D17.22—
D17.23—
D17.24—
D17.39—
D18.01—
D22.0—
D22.111—
D22.112—
D22.121—
D22.122—
D22.21—
D22.22—
D22.39—
D22.4—

Procedure codes: 11200, 11201, 11300, 11301, 11302, 11303, 11305, 11306, 11307, 11308, 11310, 11311, 11312, 11313, 11400, 11401, 11402, 11403, 11404, 11406, 11420, 11421, 11422, 11423, 11424, 11426, 11440, 11441, 11442, 11443, 11444, 11446, 17106, 17107, 17108, 17110, 17111.

Coverage indications, limitations and medical necessity

This policy addresses the Medicare coverage for the removal of benign skin lesions, such as seborrheic keratoses, sebaceous (epidermoid) cysts and skin tags. Benign skin lesions are common in the elderly and are frequently removed at the patient's request to improve appearance. Removal of certain benign skin lesions that does not pose a threat to health or function, are considered cosmetic and as such are not covered by the Medicare program.

• Medical Indications

There may be instances in which the removal of non-malignant skin lesions is medically appropriate. Medicare will, therefore, consider their removal as medically necessary and not cosmetic, if one or more of the following conditions are present and clearly documented in the medical record:

• The lesion has one or more of the following characteristics: bleeding, itching, pain; change in physical appearance (reddening or pigmentary change), recent enlargement, increase in number; or

• The lesion has physical evidence of inflammation, e.g., purulence, edema, erythema; or

• The lesion obstructs an orifice; or

• The lesion clinically restricts vision; or

• There is clinical uncertainty as to the likely diagnosis, particularly where malignancy is a realistic consideration based on the lesion appearance; or

• A prior biopsy suggests or is indicative of lesion malignancy; or

• The lesion is in an anatomical region subject to recurrent trauma, and there is documentation of such trauma.

• Wart removals will be covered under the guidelines listed above. In addition, wart destruction will be covered when any one of the following clinical circumstances is present:

• Periocular warts associated with chronic recurrent conjunctivitis thought secondary to lesion virus shedding.

• Warts showing evidence of spread from one body area to another, particularly in immunosuppressed patients.

• Lesions are condyloma acuminata or molluscum contagiosum.

• Cervical dysplasia or pregnancy is associated with genital warts.

An E&M service to determine a diagnosis of benign skin lesion(s) may be allowed (paid), even in the event the subsequent lesion(s) removal is determined to be cosmetic.

• Repair (Closure) With Excision of Benign Lesions

Payment for the excision of benign lesions of skin includes payment for simple repairs. Separate payment may be made for medically necessary layered closures, adjacent tissue transfers, flaps and grafts.

Limitations:

Medicare will not pay for a separate E & M service on the same day as a dermatologic service unless a documented significant and separately identifiable medical service is rendered. The service must be fully and clearly documented in the patient’s medical record and a modifier 25 should be used.

Medicare will not pay for a separate E & M service by the operating physician during the global period unless the service is for a medical problem unrelated to the surgical procedure. The service must be fully and clearly documented in the patient’s medical record.

If the beneficiary wishes one or more of these benign asymptomatic lesions removed for cosmetic purposes, the beneficiary becomes liable for the service rendered. The physician has the responsibility to notify the patient in advance that Medicare will not cover cosmetic dermatological surgery and that the beneficiary will be liable for the cost of the service. It is strongly advised that the beneficiary, by his or her signature, accept responsibility for payment. Charges should be clearly stated as well.

The type of removal is at the discretion of the treating physician and the appropriateness of the technique used will not be a factor in deciding if a lesion merits removal. However, a benign lesion excision must have medical record documentation as to why an excisional removal, other than for cosmetic purposes, was the surgical procedure of choice.

Excision is defined as full-thickness (through the dermis) removal of a lesion, including margins, and includes simple (non-layered) closure when performed. Each benign lesion excised should be reported separately. Code selection is determined by measuring the greatest clinical diameter of the apparent lesion plus that margin required for complete excision (lesion diameter plus the narrowest margins required equals the excised diameter). The margins refer to the narrowest margin required to adequately excise the lesion, based on the physician's judgment. The measurement of lesion plus margin is made prior to excision.

References to "physicians" throughout this policy include non-physicians, such as nurse practitioners, clinical nurse specialists and physician assistants.

Summary of evidence (opening)

N/A

the full summary and analysis of evidence are in the CMS record.

Dates, lineage and related policies

Original determination effective
2015-10-01
Current revision effective
2025-10-30
Last reviewed by the contractor
2025-09-14
MCD version
30

The contractor lists one National Coverage Determination as related: NCD 250.4 Treatment of Actinic Keratosis. Where an NCD speaks, it controls; the LCD can only address what the NCD leaves open.

Using this policy on a claim

Match the documented indication to the covered indications above before the service is scheduled, carry a diagnosis from the article's covered list on the claim line, and keep the elements the documentation section asks for in the record, because the contractor can request it later through medical review. A denial under this policy arrives as CARC 50 with remark N115; the LCD lookup guide walks through the appeal path and the Advance Beneficiary Notice rules, and the Wisconsin Physicians Service Insurance Corporation hub lists every other active policy from the same contractor.

The same policy title at other contractors

Contractors often adopt each other's policies and then revise them separately, so the criteria and the diagnosis lists drift apart. The topic comparison lines up every version.

Frequently asked questions

What does LCD L35498 cover?

This policy addresses the Medicare coverage for the removal of benign skin lesions, such as seborrheic keratoses, sebaceous (epidermoid) cysts and skin tags. Benign skin lesions are common in the elderly and are frequently removed at the patient's request to improve appearance. Removal of certain benign skin lesions that does not pose a threat to health or function, are considered cosmetic and as such are not… The full indications and limitations are reproduced on this page from the CMS Medicare Coverage Database export of September 24, 2026.

Which states does LCD L35498 apply to?

Wisconsin Physicians Service Insurance Corporation applies it to Medicare claims in AK, AL, AR, AZ, CA, CO, CT, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY. A Local Coverage Determination binds only the contractor that wrote it; the same service in another jurisdiction is judged under that contractor's own policy or, where none exists, claim by claim.

Which diagnosis codes support medical necessity under LCD L35498?

The companion billing and coding article A57482 lists 134 ICD-10-CM codes in 1 group that support medical necessity and 1 that do not; the first 24 appear on this page and the complete list is in the article on cms.gov.

How do I appeal a denial under LCD L35498?

The remittance carries claim adjustment reason code 50 with remark code N115, naming the LCD. Compare the documented indication with the policy's covered indications and the article's diagnosis list, then file a redetermination within 120 days with the record attached; if the service genuinely falls outside the policy, the patient can be billed only when a valid Advance Beneficiary Notice was obtained before the service.

Sources

Every figure on this page is taken from the CMS publications below, as released by the Centers for Medicare & Medicaid Services. Projection built 2026-10-02. Verify against the primary file before billing or contracting decisions.

Disclaimer

The policy text and code lists are reproduced from the CMS Medicare Coverage Database export as an operational reference. Verify against the current LCD and article on cms.gov before billing; coverage depends on the full record and the contractor. Not legal, clinical or billing advice.