Loading...

    Explore
    • Policy Monitoring
    • Live Policy Feed
    • Billing Codes
    • Healthcare Providers
    • Health Insurance Payers
    • States
    • Service Lines
    • Taxonomy Codes
    Lookup tools
    • Billing Code Lookup
    • CPT Modifier Lookup
    • Provider Taxonomy Code Lookup
    • Healthcare Provider & Facility Lookup
    • Health Insurance Payer Lookup
    • Payer Contact Directory

    Policy & Benchmark Tools

    • Prior Authorization Lookup
    • Coverage Criteria Lookup
    • Timely Filing Lookup
    • Billing Code Reimbursement Rates
    • Payer Comparison Dashboard
    • Facility Comparison Dashboard
    • All tools

    Company

    • About OpenPayer
    • Data Sources
    • Trek Health
    OpenPayerby Trek Health
    LinkedInYouTube

    © 2026 Trek Health. All rights reserved.

    OpenPayer is built and maintained by Trek Health.

    v1.0.30
    OpenPayerBilling CodesExcision Procedures on the LipsCPT cpt-40490-lip-biopsy-incisional
    Ask Trek AI about this page

    CPT 40490: Incisional Biopsy of Lip

    Medicare pays $124 and commercial payers pay $374 on average nationally for this procedure.

    CPT code 40490 describes an incisional biopsy of the lip, where the provider makes an incision in the lip to obtain a tissue sample of a lesion for diagnostic evaluation; this is a biopsy procedure typically performed in an office or ambulatory surgical setting under local anesthesia as part of diagnostic workup for suspicious lip lesions.

    For related coverage guidance, see recent payer policy updates: Office-based Laryngeal Procedures, Otoacoustic Emissions Testing (for Oxford Only), Hearing Aids and Devices Including Wearable, Bone-Anchored, and Semi-Implantable (for Indiana Only).

    Customize your policy alerts

    Sign up for cpt 40490 policy alerts

    Get alerted when payer policies referencing 40490 are released or updated.

    Monitor payer policy activity

    Receive email alerts as soon as relevant payer policies are published or updated.

    National Reimbursement Benchmarks

    Nationally, Medicare’s mean allowed amount of $124.40 sits well below BUCA’s commercial average of $374.00, indicating a substantial commercial premium over the Medicare baseline for CPT 40490. That gap of $249.60 highlights how commercial networks, represented here by BUCA, reimburse notably more on average than the Medicare program.

    Rate dispersion varies by payer: Blue Cross Blue Shield exhibits the widest interquartile spread with P75–P25 = $171.50 ($629.20 - $447.70), followed by UnitedHealth Group at $119.80 ($233.60 - $113.80). Aetna’s IQR is $82.00 ($123.10 - $41.00), Cigna’s is $105.50 ($205.90 - $97.40), and BUCA’s is $148.00 ($439.90 - $291.90). Medicare’s IQR is narrow at $13.00 ($129 - $116), indicating the tightest midrange among payers.

    Table of contents

    Progress1 / 9

    Explore openpayer tools

    • Billing CodesCPT, HCPCS, DRG & more
    • Reimbursement RatesCommercial vs. Medicare rate reports
    • Facility ComparisonBeds, revenue & payer mix
    • ProvidersHospitals & facilities
    • PayersPlans & market footprint
    • Taxonomy CodesNUCC specialty codes
    • ModifiersCPT modifiers & usage
    • Prior AuthorizationPA policies by payer & drug
    • Timely FilingFiling deadlines by payer
    • Coverage CriteriaMedical necessity by payer
    • Payer ContactsClaims, PA & appeals contacts
    View all tools
    National Payer Mean Reimbursement Rates

    State Reimbursement Rates

    State: Alaska1 / 51

    Clinical & Coding Specifications

    Clinical Context

    A 58-year-old patient presents to an Otolaryngology clinic with a 1.2 cm indurated, irregular lesion of the lower lip that has bled intermittently and failed to resolve after conservative care. History and exam raise concern for malignancy. The provider discusses options, obtains informed consent, and schedules a diagnostic lip biopsy performed in the office procedure room under local anesthesia. The provider incises the lip and obtains a full-thickness tissue sample of the lesion for histopathology. Specimen handling includes orientation and submission to the pathology laboratory with a requisition. The typical workflow includes pre-procedure assessment, local anesthetic infiltration, tissue sampling (incisional or punch), hemostasis, wound dressing, and post-procedure instructions. The procedure is commonly performed by Otolaryngology, Oral & Maxillofacial Surgery, or Allergy & Immunology physicians when addressing suspicious or symptomatic lip lesions. Billing uses 40490 for the biopsy; contemporaneous evaluation and management, pathology, and dressing supplies are documented separately as applicable.

    Related CPT Codes

    CPT CodeDescriptionRelationship to This Procedure
    40500Partial excision of lipSurgical excision code listed adjacent to the biopsy code; used when lesion is removed rather than sampled.

    Related Modifiers

    10 rows

    ModifierDescriptionWhen to Use
    25CPT modifier 25 indicates that on the same day as another procedure or service, the same physician or other qualified health care professional provided a significant, separately identifiable…- When to apply: Use modifier 25 only on an E/M code to indicate the same provider delivered a significant, separately identifiable E/M service on the same day as another procedure or service — i.e.,…
    26Modifier 26 (Professional Component) identifies and bills only the professional portion of a split service — the physician’s interpretation, report, and medical judgment — when the technical…- Use CPT Modifier -26 when you are billing only the professional component (PC) of a split‑bill eligible service—i.e., you performed the physician interpretation, medical judgment and prepared a…
    50Modifier –50 (Bilateral Procedure) is appended to a CPT code when an identical procedure is performed on paired anatomical structures during the same operative session. The AMA states to add…- Use modifier -50 when the same CPT surgical, diagnostic, or radiology procedure is performed on paired anatomical structures (both sides of the body) during the same operative/session by the same…
    51Modifier –51 (Multiple Procedures) is used when the same provider performs multiple procedures in the same session to identify secondary, non‑exempt procedures and indicate payment reduction logic…- Use modifier -51 when the same provider performs multiple distinct procedures during the same patient encounter: report the highest‑valued procedure first (no modifier) and append -51 to…
    52Modifier ‑52 (Reduced Services) indicates that a service or procedure was partially reduced or omitted at the provider’s discretion, allowing reporting of the basic procedure number with a qualifier…- Use modifier -52 when a physician or qualified health professional electively reduces or omits part of a procedure or service (for example, performing fewer required views or omitting a portion of…
    53Modifier 53 (Discontinued Procedure) signals that a surgical or diagnostic service was begun by the physician but terminated because of extenuating circumstances that threatened the patient’s…- Use modifier -53 when a physician/qualified healthcare professional has started a surgical or diagnostic procedure (e.g., anesthesia administered, incision or scope insertion) and then discontinues…
    57CPT® modifier -57 (“Decision for Surgery”) is appended to an Evaluation and Management (E/M) service when that encounter results in the initial decision to perform a major surgery (a procedure with a…- Use modifier 57 when an E/M service provided by the same provider (or same tax ID) on the day of or the day before a major surgical procedure (90‑day global period) results in the initial decision…
    59Modifier 59 indicates a distinct procedural service when two procedures that are not normally billed together are clinically and procedurally separate. The CPT definition (as reiterated by CMS)…- Use modifier -59 to report a distinct procedural service when documentation supports that the procedure reported is not normally billed together with another service on the same day because of a…
    62Modifier 62 indicates that two surgeons function as co‑surgeons, each performing distinct parts of the same primary surgical procedure. It is appended to the primary procedure code (and any…- Use modifier -62 when two surgeons act as co‑surgeons (both primary surgeons) on a single definitive primary procedure, each performing distinct parts of the same surgical procedure (append -62 to…
    76Modifier -76, Repeat Procedure or Service by Same Physician or Other Qualified Health Care Professional, is appended when the same provider performs an identical, medically necessary procedure or…- Use modifier -76 when the same physician or other qualified health care professional performs an identical procedure or service a second (or subsequent) time on the same date of service and the…

    Related Provider Taxonomies

    8 rows

    Taxonomy Code
    207Y00000X
    207K00000X
    208000000X
    126900000X
    367A00000X
    225CA2400X
    207N00000X
    253J00000X

    Related ICD-10-CM Codes

    25 rows

    ICD-10-CM CodeDescription
    C00.3Malignant neoplasm of upper lip, inner aspect
    C00.4Malignant neoplasm of lower lip, inner aspect
    C00.8Malignant neoplasm of overlapping sites of lip
    C00.9Malignant neoplasm of lip, unspecified
    D10.0Benign neoplasm of lip
    D23.0Other benign neoplasm of skin of lip
    D23.9Other benign neoplasm of skin, unspecified
    K12.0Recurrent oral aphthae
    K12.1Other forms of stomatitis
    K12.2Cellulitis and abscess of mouth

    Showing 1–10 of 25

    Related Payer Policy Updates

    Specialty: Otorhinolaryngology (ENT)1 / 2

    10 rows

    PolicyPayerEffective Date
    Office-based Laryngeal ProceduresPremera Bluecross2026-10-06
    Otoacoustic Emissions Testing (for Oxford Only)UnitedHealthcare2026-10-01
    Hearing Aids and Devices Including Wearable, Bone-Anchored, and Semi-Implantable (for Indiana Only)UnitedHealthcare2026-10-01
    Injectable Dermal Fillers and Bulking Agents (for Kentucky Only)UnitedHealthcare2026-10-01
    Injectable Dermal Fillers and Bulking Agents (for New Mexico Only)UnitedHealthcare2026-10-01
    Injectable Dermal Fillers and Bulking AgentsUnitedHealthcare2026-10-01
    Injectable Dermal Fillers and Bulking AgentsUnitedHealthcare2026-10-01
    Injectable Dermal Fillers and Bulking Agents (for Nebraska Only)UnitedHealthcare2026-10-01
    Injectable Dermal Fillers and Bulking Agents (for Kansas Only)UnitedHealthcare2026-10-01
    Sinus Surgeries and Interventions (for North Carolina Only)UnitedHealthcare2026-10-01

    Related Codes

    CPT-40500-VERMILION-BORDER-EXCISION-LIP-LESION

    CPT 40500: Excision of Lesion, Vermilion Border of Lip

    CPT-40510-LIP-WEDGE-EXCISION-CLOSURE

    CPT 40510: Lip Wedge Excision with Simple Suture Closure

    CPT-40520-LIP-LESION-EXCISION-V-SHAPED-INCISION-PRIMARY-CLOSURE

    CPT 40520: Lip Lesion Excision with V‑shaped Incision and Linear Closure

    CPT-40525-LIP-EXCISION-FULL-THICKNESS-WITH-LOCAL-FLAP-CLOSURE

    CPT 40525: Full-Thickness Lip Excision with Local Flap Repair

    CPT-40527-LIP-EXCISION-FULL-THICKNESS-WITH-FLAP-RECONSTRUCTION

    CPT 40527: Full-Thickness Lip Excision with Opposing Lip Flap Repair

    CPT-40530-LIP-EXCISION-MORE-THAN-ONE-FOURTH-NO-RECONSTRUCTION

    CPT 40530: Excision of More Than One-Quarter of Lip, No Reconstruction

    Frequently Asked Questions

    References

    1. 1.CPT® Codes and Descriptions. AAPC. Retrieved Aug 11, 2026.Maintains the CPT code set's official descriptions and guidelines, licensed from the American Medical Association, used as the definitional source for CPT codes on this page.
    2. 2.HCPCS Quarterly Update. Centers for Medicare & Medicaid Services (CMS). Retrieved Aug 11, 2026.CMS's quarterly release of HCPCS Level II codes and short/long descriptors, the source for HCPCS code definitions and update history.
    3. 3.ICD-10-CM Full Code List. Centers for Medicare & Medicaid Services (CMS). Retrieved Aug 11, 2026.CMS's complete ICD-10-CM diagnosis code list, used to cross-reference diagnosis codes associated with this procedure or service.
    Published by

    Trek Health powers OpenPayer with a leading commercial payer intelligence platform, seamlessly converting fragmented payer data into actionable insights for provider organizations.

    Trek Health ingests and normalizes Transparency in Coverage data and payer policy updates to give provider organizations a clear view of how commercial reimbursement behaves across markets, payers, and services. Our platform transforms raw payer disclosures into structured intelligence that supports contract evaluation, payer negotiations, and service line strategy. By combining market benchmarks with ongoing policy visibility, Trek helps teams identify variability, risk, and opportunity in commercial reimbursement. The result is faster insight, stronger negotiating positions, and more informed financial decisions.

    Rate by payer