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    v1.0.30
    OpenPayerBilling CodesSurgical Pathology ProceduresCPT cpt-88304-surgical-pathology-level-iii-gross-and-microscopic
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    CPT 88304: Surgical Pathology, Level III Examination

    Medicare pays $29 and commercial payers pay $64 on average nationally for this procedure.

    CPT code 88304 describes a level III surgical pathology examination performed by a physician (typically a pathologist) that includes accessioning the specimen, gross examination, and microscopic evaluation with documented findings; service type is surgical pathology and the typical site of service is an anatomic pathology laboratory or hospital-based pathology service.

    For related coverage guidance, see recent payer policy updates: Destruction of Pre-Malignant Skin Lesions, Onychomycosis diagnostic testing and coverage, Treatment of Capillary Malformations (Port Wine Stains).

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    National Reimbursement Benchmarks

    Medicare’s mean rate of $28.5 sits below BUCA’s average commercial mean of $63.7, indicating Medicare reimburses substantially less than this commercial benchmark for CPT 88304. The two averages frame a wide national spread between public and higher-end commercial reimbursements, with BUCA roughly $35.2 higher than Medicare on average.

    Dispersion (P75−P25) highlights variability by payer: Blue Cross Blue Shield shows the widest interquartile spread at $34.1 ($100.7−$67.6), followed by BUCA at $33.2 ($77.8−$45.6), while Aetna’s spread is $35.4 ($53.2−$18.2) which is slightly larger than BCBS and BUCA; Cigna’s spread is $35.9 ($49.3−$14.4) and UnitedHealth Group’s is $32.2 ($39.3−$16.1). Overall, Cigna and Aetna demonstrate among the largest IQRs, and UnitedHealth Group the tightest of the listed commercial payers.

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    National Payer Mean Reimbursement Rates

    State Reimbursement Rates

    State: Alaska1 / 51

    Clinical & Coding Specifications

    Clinical Context

    A 58-year-old patient presents to a dermatology clinic with a suspicious pigmented lesion on the forearm noted to have irregular borders and recent change in size. The lesion is excised in an outpatient minor procedure suite and sent to the pathology laboratory. The laboratory accessioning process formally receives the specimen, assigns a unique identifier, and documents specimen source and clinical history. A pathologist performs a level III surgical pathology examination (88304), which includes gross description (measurements, margins, and specimen type), tissue processing, microscopic evaluation of sections, and a written diagnostic report. Typical workflow steps: specimen collection in clinic or ambulatory surgery, transport to the anatomic pathology lab, accessioning and grossing by pathology assistant or pathologist, slide preparation and staining, microscopic review by the pathologist, and final signed pathology report communicated to the ordering clinician.

    Related CPT Codes

    CPT CodeDescriptionRelationship to This Procedure
    88305Level IV — surgical pathology, gross and microscopic examination (for skin other than cysts, tags, debridement and plastic repair)Higher-level specimen complexity; used when gross and microscopic examination meets criteria exceeding 88304 (e.g., larger or more complex skin specimen).

    Related Modifiers

    9 rows

    ModifierDescriptionWhen to Use
    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…
    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…
    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…
    77Modifier 77 indicates that a previously performed procedure or service was legitimately repeated by a different physician or other qualified health care professional. The AMA’s CPT definition…- Use modifier 77 when a basic procedure or service already performed is repeated by a different physician or other qualified health care professional (for example, a second provider independently…
    90Modifier ‑90 (Reference/Outside Laboratory) indicates that a laboratory test was performed by an entity other than the treating or reporting provider. The American Medical Association defines…- Use CPT modifier -90 when a laboratory test is performed by an outside/reference laboratory (an entity other than the treating or reporting physician or qualified professional) and the claim needs…
    91Modifier 91 — “Repeat Clinical Diagnostic Laboratory Test” — is appended when the exact same CPT laboratory test is performed more than once for the same patient on the same day because serial,…- Use modifier 91 when the exact same CPT laboratory test is performed more than once on the same patient on the same date because serial or repeated testing is medically necessary to monitor…
    22Modifier –22 (Increased Procedural Services) is used when a reported procedure is substantially more extensive than normally required. The CPT Manual and CMS state it may be appended only when the…- When to use: Append modifier -22 to a procedural CPT code when the service performed is substantially more extensive than the usual service described by that code — i.e., the procedure required…
    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…

    Related Provider Taxonomies

    8 rows

    Taxonomy Code
    207ZP0102X
    207ZP0101X
    207ZP0007X
    364SP0810X
    183700000X
    2471M2300X
    225XF0002X
    235Z00000X

    Related Payer Policy Updates

    Specialty: Dermatology1 / 3

    10 rows

    PolicyPayerEffective Date
    Destruction of Pre-Malignant Skin LesionsAnthem2026-10-01
    Onychomycosis diagnostic testing and coverageOscar Health2026-10-01
    Treatment of Capillary Malformations (Port Wine Stains)universityofutahhealthplans2026-09-28
    AnzupgoCigna2026-09-15
    Zevaskyn Coverage for Recessive Dystrophic Epidermolysis BullosaCigna2026-09-01
    Topical Acne-Non-Retinoid ProductsCigna2026-08-15
    Dermatology - Vtama Drug Quantity Management Policy - Per DaysCigna2026-08-15
    Medical Necessity Guidelines: Acne and Rosacea Medicationsharvard pilgrim health care2026-08-11
    Dermatology - Anzupgo Prior Authorization PolicyCigna2026-08-05
    Light Therapy for Dermatologic Conditionsbcbsvermont2026-08-01

    Related Codes

    CPT-88300-LEVEL-I-SURGICAL-PATHOLOGY-GROSS-EXAMINATION-ACCESSIONING

    CPT 88300: Surgical Pathology, Level I Gross Examination

    CPT-88302-SURGICAL-PATHOLOGY-LEVEL-II-GROSS-AND-MICROSCOPIC-EXAMINATION

    CPT 88302: Surgical Pathology, Level II Gross and Microscopic Exam

    CPT-88305-SURGICAL-PATHOLOGY-LEVEL-IV-EXAMINATION

    CPT 88305: Surgical Pathology, Gross and Microscopic Examination, Level IV

    CPT-88307-SURGICAL-PATHOLOGY-LEVEL-V-EXAMINATION

    CPT 88307: Surgical Pathology Level V Examination

    CPT-88309-LEVEL-VI-SURGICAL-PATHOLOGY-EXAMINATION

    CPT 88309: Level VI Surgical Pathology Examination

    CPT-88311-DECALCIFICATION-SPECIMEN-PREPARATION

    CPT 88311: Decalcification Procedure for Tissue Specimens

    CPT-88312-SPECIAL-STAIN-MICROORGANISMS-TECHNICAL-COMPONENT

    CPT 88312: Special Stain, Technical Component for Microorganisms

    CPT-88313-SPECIAL-STAIN-TECHNICAL-COMPONENT

    CPT 88313: Technical Special Stain for Group II (e.g., iron, trichrome)

    CPT-88314-FROZEN-TISSUE-HISTOCHEMICAL-SPECIAL-STAIN

    CPT 88314: Frozen Tissue Histochemical Special Stain, Interpretation

    CPT-88319-ENZYME-SPECIAL-STAIN-PATHOLOGY-INTERPRETATION

    CPT 88319: Special Stain for Enzyme Constituents, With Interpretation

    Showing 1–10 of 47

    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.
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