A bandage system lances a skin tag from a person's body and thereafter projects the wound created. The system has a base layer that is adhesively attached to the person such that the skin tag passes through an opening of the base layer. A cutter is located atop the base layer and uses a pair of blades that are squeezed together to cut the skin tag protruding through the opening. After cutting, a protective layer is adhered to the base layer such that a medicine laden absorbent pad on the protective layer overlays the opening on the base layer absorbing any blood from the wound and applying the medicine to the wound. Thereafter, the system is worn as a typical bandage.