Yes, this has been disputed....
Per General Surgery Alert (Jan 2008) Question
Is Lipoma Excision Separate with Hernia Repair?
Question: During an inguinal hernia repair (49505) with mesh, the surgeon preforms an excision of a lipoma of the spermatic cord. Should I report an additional code for the excision? The pathology report shows the specimen is a "hernia sac" and final diagnosis is "fibroadipose tissue". Pennsylvania Subscriber
Answer: Code 55520 (Excision of lesion of spermatic cord -separate procedure) properly describes excisions of the type your surgeon performed. But 55520 is a designated "separate procedure" that occurs here with a related primary procedure, the hernia repair 49505 (Repair initial inguinal hernia, age 5 yrs or older; reducible). Therefore, correct coding dictates that you bundle the excision into the hernia repair.
In short: You would report only the hernia repair, as usual, using 49505, with no additional code for the excision of the spermatic cord lipoma.
I did notice 55520 now bundles per CCI Version 17.1 (April 2011)