Billing code 27327: Soft-tissue excisionMedicare rate & RVUs

Medicare pays $539.42 for 27327 nationally in the office and $308.96 in a hospital or facility. Local office rates run $471.55–$708.72.

Medicare allowed amount for participating (non-QP) physicians, before deductible, coinsurance and claim adjustments. Not a patient’s bill or a hospital charge.

What 27327 covers

This service is the surgical removal of a discrete soft-tissue lesion in the thigh or knee region that lies in the subcutaneous layer and is smaller than 3 cm. A common example is excision of a small subcutaneous lipoma. An orthopedic or general surgeon may perform it in an office procedure room or an outpatient operating facility. The code describes removal of the lesion, rather than taking a sample for diagnosis or opening a collection to drain it.

Choose the code using the lesion’s documented size and tissue depth; the operative note should identify the site, dimensions, and that the lesion was subcutaneous. CMS assigns a 90-day global period, which includes the day-before preoperative visit and 90 days of related postoperative care. When multiple procedures are performed in the same session, the highest-valued procedure is paid in full and other procedures are subject to the standard 50% reduction. Bilateral reporting with modifier 50 is paid at 150%. Assistant-at-surgery payment is restricted; co-surgeons and team surgery are not permitted.

This summary was written with AI assistance from CMS physician fee schedule data and checked against the CMS billing rules shown here. Rates on this page come directly from CMS files.

Where 27327 pays more and less

The same RVUs, adjusted for each area’s costs. Open a locality for its calculation, history and nearby areas.

109 of 109 payment localities

27327 rates by state

Office rate range in each state. Select a state to see its payment localities.

How the 27327 rate is calculated

Each of 27327’s three RVUs is multiplied by a geographic index (GPCI) for the payment locality, added up, and multiplied by the conversion factor. Drag the indexes or enter a ZIP to see what moves the rate.

Payment rules and modifiers for 27327

27327 has a 90-day global period: related visits in that window are included in the surgery payment.

What modifiers do to the payment

When to use modifier 50

27327 compared with similar codes

How to choose

27337Soft-tissue excision

Both describe excision of a subcutaneous thigh or knee lesion; the size boundary is under 3 cm for 27327 and 3 cm or larger for 27337.

27328Soft-tissue tumor excision

27327 is for a subcutaneous lesion under 3 cm. 27328 is for a soft-tissue tumor in a deeper plane and has a different size threshold.

27323Soft-tissue biopsy

27323 represents biopsy of thigh soft tissue. Report 27327 when the surgeon removes the lesion rather than taking a diagnostic sample.

27301Deep drainage

27301 describes drainage of a thigh or knee lesion, such as a collection; 27327 removes a discrete subcutaneous soft-tissue lesion.

Codes related to 27327

Related codes aren’t interchangeable: bill the code that matches the service performed.

Where these rates come from

FeeBase calculates base physician payments from CMS work, practice-expense and malpractice RVUs, adjusted by each locality’s geographic indexes and the conversion factor. Services without a published rate are labeled, never given a made-up amount. Amounts are Medicare allowed amounts before claim adjustments: not a patient’s bill or a commercial rate.

CMS RVU26D · effective Oct 1, 2026 through the day before Jan 1, 2027

Open CMS sourceHow we calculate rates