In my opionion neither is wrong...the providers are simply using different techniques. You are correct in coding to the actual excision size. Think of it as the provider that performs the procedure without margins is performing a less invasive procedure. A comparison example would be laparoscopic chole versus open chole. The open procedure is a more invasive technique and therefore paid at a higher fee schedule allowance even though the end result is the same. It would not be appropriate for your surgeon to change his technique simply to increase reimbursement if he/she feels that his current technique results in safe and effective removal of the cyst.
Hope this helps.
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