Use the listed code -- every time. Q. When is a skin specimen not a skin specimen? A. When it's a lipoma. Truth is, you can insert just about any tissue type into the preceding question and you'll have the same answer. Making a lipoma coding error can cost your pathologist appropriate pay -- or set you up to reimburse for overpayment. Use the following three tips to optimize your lipoma coding know-how: Lipoma is the Exception, Not the Rule A lipoma, which can occur just about anywhere in the body, is a benign neoplasm composed of mature fat cells. But that's where your medical terminology knowledge can lead you astray. ICD-9 segregates lipoma: CPT® distinguishes lipoma, too: CPT® has a different code for lipoma: 88304 (Level III -- ... soft tissue, lipoma). "This can be very confusing for coders," says Tina Burkhalter, billing manager with SouthEastern Pathology in Rome, Ga. "If the pathology report indicates the specimen received from surgery is a breast biopsy, but the final diagnosis is lipoma, what should you do?" Avoid Upcoding Blunder In the preceding example of a breast biopsy that the pathologist diagnoses as a lipoma, you'd be overcharging if you bill 88305 instead of 88304 for the case. The Medicare physician fee schedule national facility amount is $106.01 for 88305, but only $62.52 for 88304 (conversion factor 33.9764). That's $43.49 you'd have to pay back on an audit. Follow ICD-9 guidelines: And once you've assigned an ICD-9 code, that information must support the procedure code. If the surgeon's description contradicts the pathologist's definitive diagnosis, you should use the pathology findings to define the specimen. In this example, the specimen is a lipoma, not a breast biopsy. Follow CPT® rules: Using the same logic, if the surgeon identifies the tissue as a skin biopsy (88305 ... skin, other than cyst/tag/debridement/ plastic repair) but the pathologist diagnoses a lipoma, you'd need to report the case as 88304. Grab Upcoding Opportunity Sometimes the lipoma distinction works in your favor, and you'll want to be sure to capture the payment you deserve. For example, lipomas of the spermatic cord can cause hernia-type symptoms in the absence of a true hernia, or associated with an inguinal hernia. Case study: Bottom line: