Fast, Accurate Dermatology Coding: ICD-10 Codes You Should Know

ICD-10 codes enable dermatology clinics, insurance companies, and government agencies to share information about a patient’s condition. They organize a tremendous number of dermatology diagnoses into a standardized format all three stakeholders can understand.

ICD-10 stands for the 10th revision of the International Classification of Diseases, created and maintained by the World Health Organization. WHO further divides diagnoses into ICD-10-CM (primarily used in outpatient and clinical settings) and ICD-10-PCS (primarily used in inpatient and hospital settings).

Just as ICD-10 codes classify diseases, CPT codes classify procedures. Coders in a dermatology practice need to be well trained in both coding languages.

Note: This content has been updated since the original publish date.

Changes to ICD-10 for 2025

The World Health Organization updates its list of codes annually. The 2025 changes to the ICD-10 took effect Oct. 1, 2024.

This year’s changes included:

• 252 new CM codes
• 36 deleted CM codes
• 14 revised CM code descriptions

ICD-10 Codes Commonly Used in Dermatology

There are just as many ICD-10 codes for dermatology as there are conditions a patient might be diagnosed with. Here are a few of the most common diagnoses the coders in your practice will encounter. (This list is representative only and not intended to be comprehensive.)

Common Coding Errors for Dermatology Practices to Avoid

Accurate coding is crucial to operating a successful dermatology practice. If a claim uses the wrong code, or fails to provide enough information through its codes, it’s likely to be rejected by insurers.

Clinics then have to go through the expense of correcting and resubmitting the claim. Even if it’s accepted on the second try, the error created an unnecessary delay in collecting reimbursement.

Avoid these common mistakes to keep claims moving smoothly:

1. Allowing staff training on ICD-10 to lapse

The ICD-10 updates every year. Make sure your staff is aware of any changes from one year to the next. 

Continuing education for employees benefits the business through better performance and fewer errors. But it also has long-term advantages.

Businesses that invest in staff training tend to have more engaged employees. Staff at these businesses report believing their employer cares about them and their career — important factors in employee satisfaction and retention.

2. Not being specific in coding

Dermatology ICD-10 codes are often appended with numbers that specify where the condition is found on the patient’s body or what likely caused it.

Coding to the highest level of specificity possible helps payers understand the patient’s condition, making clean claims passes more likely.

Specific coding also provides valuable data for public health statistics and vital information for future clinicians reviewing the patient’s EHR.

Establish practices that emphasize complete documentation and clear communication between clinical and billing staff. Automated charting technology helps ensure charts are complete and specific when they reach the coder’s desk.

3. Consolidating diagnoses and services

When multiple decisions are made or services are performed in the same visit, it can lead to another common error: combining diagnosis and procedure codes.

A simple example is an abnormal skin check. The exam, the diagnosis, any treatment delivered, and any follow-up prescribed are all coded separately in the claim.

Clinicians can help with this by being very specific as they enter information into the dermatology EHR, noting everything that occurred in the visit.

4. Misusing modifiers

Modifiers append to standard codes to indicate special circumstances — for example, when two completely different conditions are diagnosed the same day. 

Modifiers are rare and should be used with discretion. Be prepared to be challenged on their use, and be sure you have the documentation to justify them.

5. Not taking advantage of automation

Your dermatology EHR can be one of your greatest tools in improving coding accuracy.

Automated tools prefill information in the chart, allowing clinicians to concentrate on the patient and eliminating hours of after-work charting. As the clinician enters their notes in the EHR, prompts ensure coders will have the specificity they need.

Maximize your coders’ efficiency by augmenting your EHR with an integrated practice management system specifically for dermatology. It prioritizes the codes relevant to skin health, making it easy for staff to find and verify the codes they need.

The tool’s built-in checks ensure diagnoses and services are coded correctly and that nothing was improperly combined.

Improve Coding Efficiency at Your Dermatology Practice

Nextech’s dermatology-specific EHR and practice management system creates and supports an efficient workflow between clinic and billing staff.

Advanced automation reduces the risk of manual errors. The system includes automatic checks and validation and is always up to date with the latest guidelines.

In addition, you’ll enjoy less paperwork, better patient engagement, and data you can use to make strategic business decisions.

Efficient coding boosts your clinic’s productivity, reduces claims denials, and improves your revenue cycle management. Schedule a demo to see what Nextech can do for you.