Dermatology Billing Services

Dermatology billing involves high procedure volume alongside E/M visits, with complex rules around biopsy coding, lesion destruction, Mohs surgery, and cosmetic vs medical distinctions. Getting the coding right determines whether your practice is profitable.

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11102Skin Biopsy

17000Lesion Destroy

17311Mohs

99213Office Visit

Why Dermatology Billing Requires Specialty Expertise

Dermatology practices perform dozens of procedures daily alongside office visits. Biopsy coding changed significantly with the 11102-11104 code series, lesion destruction has count-based coding (17000 for first, 17003 for 2-14), and Mohs surgery (17311-17315) has its own complex coding structure. Practices that don't code these correctly lose significant revenue.

Common Dermatology CPT Codes

Our coders handle these dermatology codes daily. This is not an exhaustive list.

Code

Description

11102

Tangential biopsy (shave)

11104

Punch biopsy

17000

Destruction of first lesion (cryotherapy)

17003

Destruction of additional lesions (2-14)

17311

Mohs surgery, first stage, head/neck

11600-11606

Excision of malignant lesion (by size)

96910-96922

Phototherapy (UV-B, PUVA)

96401-96402

Chemotherapy injection (biologics)

2026 Medicare Allowables for Dermatology CPT Codes by State

Medicare reimbursement for dermatologyprocedures is not a single national number. Each code's allowable is adjusted by your state's Geographic Practice Cost Index (GPCI) and processed under that state's Medicare Administrative Contractor (MAC), so the same dermatology CPT code pays a different amount in California than it does in Texas or Florida. The table below shows the 5 core dermatologycodes our coders bill priced at each state's 2026 locality. The non-facility figure is what an office-based practice collects. The facility figure applies when the service is performed in a hospital-based setting.

Commercial carriers in each state typically reimburse above these Medicare benchmarks and state Medicaid below them, but the Medicare allowable is the contracting anchor every payer negotiation starts from. Compare any individual code across all states with our Medicare fee calculator by state.

2026 Medicare non-facility allowable for Dermatology CPT codes across high-volume states
Code	Dermatology Procedure	CA	TX	FL	NY	PA	IL	OH	GA	NC	MI
11102	Tangential biopsy (shave)	$108.60	$94.39	$97.66	$105.60	$94.38	$94.99	$89.27	$92.64	$89.97	$91.94
11104	Punch biopsy	$137.55	$119.77	$124.40	$134.15	$119.82	$121.00	$113.34	$117.68	$114.05	$116.91
17000	Destruction of first lesion (cryotherapy)	$74.46	$65.74	$68.52	$73.30	$65.87	$66.85	$62.59	$64.84	$62.75	$64.56
17003	Destruction of additional lesions (2-14)	$7.31	$6.28	$6.36	$6.99	$6.26	$6.18	$5.91	$6.12	$6.01	$6.04
17311	Mohs surgery, first stage, head/neck	$746.84	$659.83	$687.16	$735.15	$661.07	$670.65	$628.44	$650.71	$630.07	$647.88

Full Dermatology fee detail by state

State:

2026 Medicare allowables for dermatology CPT codes in California, processed under Noridian Healthcare Solutions (Jurisdiction E). See California medical billing.

2026 Medicare allowables for Dermatology CPT codes in California
Code	Description	Non-Facility	Facility
11102	Tangential biopsy (shave)	$108.60	$31.14
11104	Punch biopsy	$137.55	$39.14
17000	Destruction of first lesion (cryotherapy)	$74.46	$52.33
17003	Destruction of additional lesions (2-14)	$7.31	$1.78
17311	Mohs surgery, first stage, head/neck	$746.84	$297.07

Source: 2026 Medicare Physician Fee Schedule, locality-adjusted by state MAC. Figures are for reference and contracting benchmarks, not a guarantee of payment.

Dermatology Billing Challenges We Solve

Common billing problems in dermatology and how our team handles them.

Biopsy Code Selection

Tangential (11102), punch (11104), and incisional (11106) have different RVUs. Wrong selection costs revenue.

Lesion Count Coding

17000 for first lesion, 17003 for 2-14, 17004 for 15+. Many practices under-report counts.

Mohs Surgery Complexity

Stage counting, tissue block tracking, and repair codes billed alongside Mohs require precision.

Medical vs Cosmetic

Payers deny procedures they classify as cosmetic. Documentation must clearly establish medical necessity.

Common Dermatology Denial Reasons

We prevent these before submission and appeal aggressively when they occur.

Wrong biopsy technique code selected

Lesion count not documented for destruction codes

Mohs stage/block documentation insufficient

Procedure deemed cosmetic (no medical necessity)

E/M billed same-day as procedure without mod 25

Pathology codes bundled with biopsy

Revenue Opportunities Most Dermatology Practices Miss

Dermatology practices perform dozens of procedures daily, and small coding improvements per procedure multiply quickly. Three key areas: First, lesion destruction count accuracy. Many practices under-report the number of lesions treated with cryotherapy. The reimbursement structure pays well for volume: 17000 (first lesion) plus 17003 (each additional 2-14) can total $300 to $500 when 8 to 10 lesions are treated. But if the provider treats 8 lesions and the billing team codes only 17000 + 17003 x3 instead of x7, the practice loses $100 to $200 on that encounter alone. Second, biopsy technique accuracy. The 2019 biopsy code changes created three distinct code families based on technique. Tangential biopsies (11102, +11103) reimburse differently than punch biopsies (11104, +11105) and incisional biopsies (11106, +11107). Practices that don't differentiate are either undercoding or exposing themselves to compliance risk. Third, Mohs surgery represents the highest-revenue procedure in dermatology. Each additional stage and each additional tissue block generates significant additional charges. Proper documentation of every stage, block, and margin ensures full reimbursement. For a Mohs surgeon performing 8 to 10 cases per week, optimized coding can add $50,000 to $100,000 annually.

Payer-Specific Dermatology Billing Tips

Medicare pays dermatology procedures based on the Medicare Physician Fee Schedule with annual updates. Watch for LCD (Local Coverage Determination) changes from your Medicare Administrative Contractor — these affect medical necessity criteria for procedures like phototherapy, Mohs surgery, and biologic medications. Commercial payers increasingly require prior authorization for biologic medications used in dermatology (Humira, Stelara, Dupixent, Skyrizi). Step therapy requirements (try and fail cheaper alternatives first) are common. We document the patient's treatment history to satisfy step therapy requirements before submitting the auth request. Cosmetic vs medical determinations are the most contentious area in dermatology billing. Payers deny procedures they classify as cosmetic — mole removal, lesion destruction, and even some reconstructive procedures after Mohs surgery. The key defense is documentation: establish medical necessity through documented symptoms (pain, bleeding, growth, functional impairment) or pathology results showing atypia or malignancy. We check that your documentation includes the medical necessity language payers require before the claim is submitted.

Dermatology Billing Best Practices

Practical tips from our coding team to maximize reimbursement and minimize denials.

Document the biopsy technique (tangential/shave, punch, incisional) in the procedure note — this determines whether you code 11102, 11104, or 11106. The technique, not the pathology result, drives the code.

For multiple lesion destruction, count and document every lesion treated. 17000 covers the first, 17003 covers lesions 2 through 14, and 17004 covers 15 or more. Under-counting is the most common dermatology billing error.

When performing a biopsy and destruction on the same lesion, only one can be billed. But if biopsy and destruction are on different lesions, both are billable with modifier 59.

Mohs surgery documentation must include number of stages, number of tissue blocks per stage, and mapping. Each additional stage (17312) and each additional block (17315) are separately billable.

For excisions, always document the lesion diameter in centimeters AND the margin width. The code is based on total excision size (lesion + margins), not just the lesion.

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What We Handle for Dermatology Practices

Biopsy coding (tangential, punch, incisional)

Lesion destruction with count-based coding

Mohs micrographic surgery billing

Excision coding with size documentation

Phototherapy and biologic administration

Same-day E/M + procedure optimization

Medical necessity documentation support

Pathology code coordination

Why Choose Go Medical Billing for Dermatology

Dermatology billing errors are costly because of the high procedure volume. Our coders know the biopsy code changes, count-based lesion destruction rules, and Mohs surgery coding structure. We capture every procedure correctly and fight cosmetic denials with proper medical necessity documentation.

We serve dermatology practices in all 50 states, starting at 2.49% of collections. Our credentialing team handles payer enrollment, and our A/R specialists recover aging claims.

Dermatology Billing by State

We handle dermatology billing in all 50 states. The 2026 Medicare allowables for dermatology CPT codes in every state are in the fee table above. Open any state below for its full payer environment, Medicaid rules, and Medicare MAC policies.

California Texas Florida New York Pennsylvania Illinois Ohio Georgia North Carolina Michigan New Jersey Virginia Massachusetts Arizona Tennessee Maryland Indiana Missouri Wisconsin Colorado

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Related Resources

Medical Billing & Coding Services A/R Recovery Services Credentialing & Contracting Case Studies & Results Pricing

Frequently Asked Questions

We code 11102 (tangential), 11104 (punch), 11106 (incisional) based on the technique documented. Many practices still use old codes.

Yes. Stage counting, tissue block documentation, and repair codes alongside Mohs. We understand the full coding structure.

We verify documentation clearly establishes medical necessity for every procedure. When payers deny as cosmetic, we appeal with clinical justification.

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Stop losing revenue to dermatology coding errors and preventable denials. Call 888-701-6090 for a free billing assessment.

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