Undercoding happens when a dermatologist carries out a procedure that is more complex than what is billed for in the claim. This means the doctor has done more work than they will receive payment for. It is crucial for your office to avoid undercoding to ensure adequate reimbursement for the services provided. Challenges in Medical Billing for Dermatology Practices
Two examples of undercoding result from dermatology billing coding mistakes regarding cryotherapy and electrosurgery, which are the two most prevalent methods for destroying malignant growths in dermatology. You’re undercoding if you’re dermatologist and you utilize cryotherapy to destroy a malignant growth, but by mistake, you bill for a less complex procedure, like a simple excision.
Another example of undercoding would be if you employed electrosurgery to destroy a growth, but you billed for a less complicated procedure, such as electrodesiccation.
You’re also undercoding if you treat multiple malignant growths, but you bill for only one. The right way to do it would be to bill for each growth separately, since each requires a distinct procedure.