CMS creates permanent drug code for treating molluscum contagiosum

Last updated: March 5, 2026

CMS has created a permanent drug code, J7354, for cantharidin, a drug used to treat molluscum contagiosum in adult and pediatric patients 2 years and older. The new J-code became effective on April 1, 2024.

Cantharidin is the first FDA-approved topical treatment for molluscum contagiosum. The manufacturer provides the topical biologic in a single-use sealed glass ampule containing 3.2 mg of 0.7% cantharidin solution.

Cantharidin (Ycanth) topical solution is considered medically necessary and, therefore, covered for the treatment of molluscum contagiosum in adult and pediatric individuals ages 2 years and older. This topical solution is administered by a professional as a single application to each lesion every 3 weeks as needed, with no more than 2 applicators used per session.

When the drug is ordered through the patient’s pharmacy benefit program and then brought to the office for application, treatment of molluscum contagiosum using cantharidin can be reported with the appropriate evaluation and management (E/M) code when performed, and clinical staff in the practice can apply the medication as part of the dermatologist’s treatment plan.

When the drug is supplied by the practice and applied by office staff, the practice can report the service in one of two ways.

1. Report the encounter as a destruction procedure.

To report the encounter, one can use ICD-10-CM code B08.1, Molluscum contagiosum, and CPT code 17110 – 17111 Destruction (e.g., laser surgery, electrosurgery, cryosurgery, chemosurgery, surgical curettement), of benign lesions other than skin tags or cutaneous vascular proliferative lesions (depending on the number of lesions treated during the encounter).

2. Report the service for the application of the drug.

Report 1 unit per applicator administered; commonly, a maximum of 2 units (2 applicators) is allowed per treatment session every 3 weeks.

When billing for cantharidin using J7354, the claim form should indicate the drug’s name, strength, 10 or 11 digit NDC number from the manufacturer’s pamphlet, and dosage. Pricing information will be available on the CMS website at Medicare HCPCS Quarterly Updates.

JZ Modifier

Under Medicare’s discarded drug policy, claims for drugs from single-dose containers require use of the JZ modifier (Zero drug amount discarded/not administered to any patient) or JW modifier (Drug amount discarded/not administered to any patient). Because it is not possible to bill for less than 1 single-use applicator of YCANTH, only the JZ modifier is appropriate for use with HCPCS code J7354.

Note: Discarded drug and JZ/JW modifier policies for payers other than Medicare may vary; providers should check with their specific plans to determine billing requirements.