You are in a bit of a pickle here.
First, MANY other Medicare carriers DO cover D22.5 and D22.61 as covered ICD-10 codes for benign lesion removal (excision, shave, etc.). Pennsylvania does NOT as you have found.
A couple courses of action.
1. Contact the CMS carrier to see if they will add it to their policy as a coverered diagnosis code citing other carriers (e.g., California) as an example. Here is the contact for Pennsylvania.
vicki.kurland@novitassolutions.com
https://www.cms.gov/Medicare/Coding/ICD10/ICD-10-Provider-Contact-Table.pdf
2. You can try and appeal citing the provider's determination of medical necessity as why the lesion needed removal, however your chances of overturning the LCD are limited.
3. If you have such a situation in the future and you know the DX isn't covered, you can have the Medicare patient sign an ABN notifying that it may get denied and if so, they may be responsible for the charges if it is deemed medically unncessary.
4. If it's already been billed and denied and an appeal fails, you may be out of luck in this case.
5. I would not change (i.e. override) the diagnosis of the path report in order to get paid. That would be considered Fraud. I feel that asking the path lab to change the DX in order to get paid would also be construed as fraud.