CPT 27337 Reimbursement & Policy Benchmarks | OpenPayer

Summary & Overview

CPT 27337: Excision of Subcutaneous Tumor of Thigh or Knee, ≥3 cm

CPT code 27337 designates the excision of a subcutaneous tumor 3 cm or larger from the thigh or knee. This surgical procedure is clinically significant because tumor size and anatomic location affect operative approach, potential reconstruction needs, and postoperative surveillance. Nationally, accurate coding for sizable soft-tissue tumor excisions informs payment, quality measurement, and resource planning across surgical and oncology services.

Key payers discussed include Aetna, Blue Cross Blue Shield, Cigna Health, UnitedHealthcare, and Medicare. Readers will find a concise overview of clinical context, typical sites of service, and the role of this code in claims workflows. The publication presents benchmarks and utilization patterns where available, summarizes relevant policy and coverage considerations from major payers, and highlights coding and billing nuances that can affect claim adjudication.

The report is intended for billing professionals, surgical providers, and policy analysts seeking clarity on how CPT code 27337 is applied and reimbursed across major commercial and public payers. Data not available in the input is noted explicitly where applicable.

AetnaBlue Cross Blue ShieldCigna HealthUnitedHealthcareMedicareCPT 27337soft tissue excisionsurgical oncologyorthopedic surgeryambulatory surgeryprocedure codingoperative servicesclaims management

Billing Code Overview

CPT code 27337 describes the surgical excision of a tumor measuring 3 cm or larger located in the subcutaneous tissues of the thigh or knee. This procedure involves removal of a sizable subcutaneous mass and may require operative planning for appropriate margins and closure.

Service type: Surgical excision
Typical site of service: Ambulatory surgical center or hospital operating room

Clinical & Coding Specifications

Clinical Context

A middle-aged patient presents to an outpatient surgical clinic with a palpable, enlarging subcutaneous mass on the anterolateral thigh measuring approximately 4 cm by clinical exam and ultrasound. After history, examination, and imaging suggest a benign-appearing soft tissue tumor (for example, lipoma or pilomatrixoma) or a suspicious lesion requiring definitive diagnosis, the patient is scheduled for excisional removal. The procedure described by 27337 is performed under regional or general anesthesia in an ambulatory surgery center or hospital outpatient department. The workflow includes preoperative evaluation (consent, medical history, medication reconciliation), marking the operative site, administration of anesthesia, an elliptical skin incision with blunt and sharp dissection through subcutaneous tissue to fully excise the tumor with an appropriate margin, hemostasis, specimen labeling and submission to pathology, layered closure of the wound, dressing application, and postoperative recovery with discharge instructions. Typical intraoperative documentation includes tumor size (measured specimen ≥3.0 cm), anatomic location (thigh or knee subcutaneous tissue), estimated blood loss, anesthesia type, and any unexpected findings. Postoperative follow-up occurs in clinic to assess wound healing and review pathology results.

Coding Specifications

Modifier	Description	When to Use
`22`	Increased procedural services

CPT 27326: Popliteal/Gastrocnemius Nerve Excision to Relieve Spasm

CPT-27360-PARTIAL-EXCISION-FEMUR-PROXIMAL-TIBIA-FIBULA

CPT 27360: Partial Excision of Femur, Proximal Tibia, or Fibula

CPT-27339-EXCISION-INTRAMUSCULAR-THIGH-KNEE-TUMOR-5CM-PLUS

CPT 27339: Excision of Intramuscular Thigh or Knee Tumor ≥5 cm

CPT-27365-FEMUR-KNEE-TUMOR-EXCISION

CPT 27365: Excision of Tumor, Femur or Knee

CPT-27357-FEMORAL-BONE-CYST-EXCISION-AUTOGRAFT

CPT 27357: Femoral Bone Cyst Excision with Autograft

CPT-27345-POPLITEAL-BAKERS-CYST-EXCISION

CPT 27345: Popliteal (Baker’s) Cyst Excision

CPT-27324-DEEP-SOFT-TISSUE-BIOPSY-THIGH-KNEE

CPT 27324: Open Deep Soft-Tissue Biopsy of Thigh or Knee

CPT-27364-EXTENSIVE-EXCISION-SOFT-TISSUE-TUMOR-THIGH-KNEE-5CM-PLUS

CPT 27364: Extensive Excision of Soft Tissue Tumor, Thigh or Knee ≥5 cm

CPT-27332-KNEE-ARTHROTOMY-MENISCAL-EXCISION

CPT 27332: Knee Arthrotomy with Meniscal Excision

CPT-27358-ORTHOPEDIC-INTERNAL-FIXATION-ADD-ON

CPT 27358: Orthopedic Internal Fixation Add-On Procedure

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Taxonomy Code	Specialty	Notes
207L00000X	Orthopedic Surgery	Orthopedic surgeons commonly excise soft-tissue tumors of the thigh and knee.
207K00000X	General Surgery	General surgeons perform subcutaneous tumor excisions in extremities in ambulatory settings.
207Q00000X	Dermatology	Dermatologic surgeons or procedural dermatologists may perform subcutaneous tumor excisions when lesions involve skin and subcutaneous tissue.
208800000X	Plastic Surgery	Plastic surgeons perform complex excisions and reconstructions when closure or cosmesis is a primary concern.
207XS0100X	Surgical Oncology	Surgical oncologists manage excisions when malignancy is suspected or for oncologic margins.

Related Diagnoses

ICD-10 Code	Description	Clinical Relevance
`D17.4`	Benign lipomatous neoplasm of lower limb, including hip	Common benign subcutaneous tumor prompting excisional removal when symptomatic or large (≥3 cm).
`D23.6`	Other benign neoplasm of skin of lower limb, including hip	Superficial benign skin or subcutaneous lesions requiring excision for diagnosis or symptom relief.
`M79.89`	Other specified soft tissue disorders, not elsewhere classified	Used for nonspecific soft-tissue masses when a definitive neoplasm code is pending pathology.
`C49.A9`	Malignant neoplasm of connective and soft tissue of unspecified lower limb, part unspecified	Used when malignancy of soft tissue is diagnosed or highly suspected and excision is for oncologic management.
`L02.418`	Cutaneous abscess of other part of lower limb	Includes infected subcutaneous masses that may require incision and drainage or excision if organized and refractory to conservative care.
`R22.42`	Localized swelling, mass and lump, lower limb	Symptom code used when the clinical presentation is a mass and definitive diagnosis is pending pathology or imaging.

Related CPT Codes

CPT Code	Description	Relationship to This Procedure
`12032`	Repair, intermediate, wounds of scalp, axillae, trunk and/or extremities; 2.6 cm to 7.5 cm	May be reported for layered closure of the incision when separate repair code is appropriate and not included in excision payment depending on payer rules.
`20220`	Excision of benign tumor, subcutaneous; trunk, arms or legs, except foot; 3 cm or less	Represents a size-based related excision code for smaller lesions; used when tumor measures ≤3 cm.
`27065`	Excision, tumor, soft tissue of pelvis and hip area; subcutaneous; greater than 3 cm	Alternative anatomic location code for adjacent anatomic regions when tumor is near hip/pelvic girdle.
`88305`	Level IV surgical pathology, gross and microscopic examination	Reported by pathology for evaluation of the excised specimen when pathologic analysis is performed.
`99024`	Postoperative follow-up visit, typically included in global surgical package; services in recognized postoperative period	Used by some payers to indicate routine postoperative care is included in the global period; documented in the clinical record if billed separately per payer rules.
`11042`	Debridement; subcutaneous tissue (includes epidermis and dermis if performed)	May be performed in cases where debridement is required in addition to tumor excision, if clinically indicated.

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