CPT 27345 Surgery - Musculoskeletal

How Much Does Removal of Knee Cyst Cost?

Also known as: Removal of knee cyst (CPT 27345)

Excision of a Baker cyst (popliteal cyst) behind the knee.

The total estimated cost of Removal of Knee Cyst (CPT 27345) is $1,574 to $2,951, including hospital fees, anesthesia, and supplies. The surgeon's Medicare fee alone is $468.

Total Estimated Cost of Care

$1,574 — $2,951

This estimate includes hospital facility fees, anesthesia, and supplies .

Surgeon/Physician Fee
$468
Hospital Facility Fee
$1,405
Anesthesia (est.)
$94
Important: The physician fee of $468 shown in the cost cards below is what Medicare pays the surgeon/doctor only. The hospital charges a separate facility fee that typically makes up 70-85% of the total cost.
Medicare Physician Fee (Facility Setting)
$468
Physician component only — CMS PFS 2026

Patient Guide: Removal of Knee Cyst

What you need to know before your appointment

What to Expect

Under anesthesia, the surgeon removes the fluid-filled cyst from behind the knee.

How Long Does It Take?

30-60 minutes

Common Reasons Doctors Order This

Painful Baker cyst, large cyst causing knee stiffness, cyst not responding to aspiration

How to Prepare

Fast before surgery. Compression bandage afterward. Physical therapy helps restore knee motion.

Procedures Commonly Done Together

These procedures are frequently performed alongside Removal of knee cyst

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How to Reduce Your Cost for Removal of knee cyst

Practical tips that can save you hundreds or thousands of dollars

  • 1
    Ask about cash-pay discounts

    Many hospitals and clinics offer 20-40% discounts for self-pay patients. Always ask before scheduling.

  • 2
    Compare facility vs. office setting costs

    Some procedures cost significantly less in an office setting than a hospital. Ask your provider about options.

  • 3
    Shop around — costs vary significantly

    Costs can vary 2-3x between providers in the same city. Get quotes from multiple facilities.

How is the Price Calculated?

Medicare calculates procedure payments using Relative Value Units (RVUs). Each procedure has three components multiplied by a conversion factor ($33.40 in 2026) and adjusted by geographic cost indices.

5.94
Work RVU
6.82
Practice Expense RVU
1.26
Malpractice RVU
14.02
Total RVU

Payment = Total RVU (14.02) x CF ($33.40) = $468

Frequently Asked Questions

How much does Removal of knee cyst cost?

The Medicare facility rate for Removal of knee cyst is $468. Commercial insurance rates typically range from 150% to 250% of Medicare (varies by plan).

How much does Removal of knee cyst cost without insurance?

Without insurance, the cost of Removal of knee cyst can range from 150% of Medicare to 500% of Medicare depending on the facility. Many hospitals and clinics offer self-pay discounts of 20-40% off their chargemaster price. Always ask about cash pricing before your visit.

Does insurance cover Removal of knee cyst?

Most commercial health insurance plans and Medicare cover Removal of knee cyst when ordered by a physician for a medically necessary reason. Your out-of-pocket cost depends on your plan's deductible, copay/coinsurance structure, and whether you use an in-network provider. Check with your insurance company before scheduling to confirm coverage and get a cost estimate.

Why does the cost vary so much by location?

Medicare adjusts payments using Geographic Practice Cost Indices (GPCIs) that reflect local differences in physician work costs, practice expenses, and malpractice insurance. Manhattan, San Francisco, and other high-cost areas pay significantly more than rural regions. Commercial insurers follow similar geographic patterns.

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