Removal of knee cyst
Knee cyst removal costs range from $470.62 at Medicare rates to $3,244.61 for hospital outpatient procedures, making bill verification essential given this potential difference of $2,773.99 depending on your care setting.
About the analyst
David Park researches procedure pricing and insurance reimbursement patterns at BillRazor Research. He specializes in cost comparison across care settings and metropolitan areas. Expertise: procedure pricing, insurance reimbursement, cost comparison.
Code 27345 covers surgical removal of a cyst or benign tumor from the knee area, involving an incision to extract the growth from surrounding tissue. This procedure is typically performed on patients with painful or limiting knee cysts that don't respond to conservative treatment. Medicare reimbursement rates for this code vary significantly between outpatient and inpatient settings, with potential billing differences of several thousand dollars depending on the facility type.
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Common billing errors
Common billing errors in musculoskeletal procedures often involve confusion between arthroscopy codes (29800-29999 series) and open joint procedures (27000-28000 series), where providers may bill the higher-reimbursed open procedure when arthroscopic methods were used. Unbundling frequently occurs with injection procedures, where separate billing for imaging guidance (such as fluoroscopy code 77002) appears alongside joint injection codes that already include guidance in their description. Duplicate charges emerge when both diagnostic and therapeutic arthroscopy codes are billed for the same joint during a single session, despite Medicare's bundling rules. Physical therapy evaluation codes (97161-97163) are commonly duplicated across multiple sessions when only initial evaluations warrant these specific codes. Patients should verify that hardware removal procedures aren't billed separately when performed during the same operative session as implant placement, as these combinations often represent charges above the benchmark for standard bundled procedures. Documentation should clearly support any bilateral procedure modifiers that significantly increase reimbursement rates.
Facility rate
$471
National Medicare benchmark
Non-facility rate
$99
Office setting benchmark
Data sources
4
24 data points
Key insights for CPT 27345
ASC vs hospital outpatient savings
$1,665Having this done at an ambulatory surgery center costs $1,579 vs $3,245 at a hospital outpatient
Facility vs office setting
$372 differenceNon-facility setting is less expensive for this procedure
What this procedure costs across different settings
The same procedure can cost very different amounts depending on where it's performed. These are the Medicare-allowed amounts — what hospitals actually charge can be 3-10x higher.
| Setting | Medicare rate | vs lowest |
|---|---|---|
| Facility (physician office) | $471 | +375% |
| Non-facility (office) | $99 | Lowest |
| Outpatient (APC) | $3,245 | +3177% |
| Ambulatory surgery (ASC) | $1,579 | +1495% |
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About this data
Rates shown are from the 2026 Medicare Physician Fee Schedule, Hospital Outpatient Prospective Payment System (OPPS), Ambulatory Surgery Center Payment System, Clinical Laboratory Fee Schedule, Durable Medical Equipment Fee Schedule, and CMS Inpatient Prospective Payment System (DRG weights). Regional adjustments use CMS Geographic Practice Cost Indices (GPCI). Hospital charges are from CMS Hospital Price Transparency machine-readable files. All data is publicly available under federal law (45 CFR Part 180).
This data is for informational purposes only and does not constitute medical or financial advice. Actual costs depend on insurance coverage, negotiated rates, and individual circumstances.
Related procedures
FAQ — Bones, Joints & Muscles billing
What is the typical Medicare reimbursement range for musculoskeletal procedures?
How many different musculoskeletal procedures does Medicare cover?
What should I expect for billing variations in musculoskeletal procedures?
How does the average Medicare rate compare across the musculoskeletal procedure category?
Related pricing data
Data: Medicare Physician Fee Schedule, CMS Inpatient PPS (IPPS), Outpatient PPS (OPPS), ASC Payment System, Clinical Lab Fee Schedule (CLFS), National Average Drug Acquisition Cost (NADAC). FY 2024 data. All publicly available from CMS.
Methodology: Facility rate applies when the procedure is performed in a hospital or ASC. Non-facility rate applies in a physician office. GPCI adjustments reflect regional cost-of-living differences.
This information is for educational purposes only and is not medical, financial, or legal advice. Actual costs depend on your insurance and provider. We recommend verifying costs directly with your provider. Full methodology · Terms of use