Where this LCD applies
Each contract number is a jurisdiction on the remittance; the policy binds claims processed under these contracts and no others.
| Contract | Contractor | Type | States |
|---|---|---|---|
| 06101 | Wellpoint Federal | MAC - Part A | IL |
| 06201 | Wellpoint Federal | MAC - Part A | MN |
| 06301 | Wellpoint Federal | MAC - Part A | WI |
| 06102 | Wellpoint Federal | MAC - Part B | IL |
| 06202 | Wellpoint Federal | MAC - Part B | MN |
| 06302 | Wellpoint Federal | MAC - Part B | WI |
| 13101 | Wellpoint Federal | A and B and HHH MAC | CT |
| 13201 | Wellpoint Federal | A and B and HHH MAC | NY |
| 13102 | Wellpoint Federal | A and B and HHH MAC | CT |
| 13202 | Wellpoint Federal | A and B and HHH MAC | DN |
| 13282 | Wellpoint Federal | A and B and HHH MAC | UN |
| 13292 | Wellpoint Federal | A and B and HHH MAC | QN |
| 14411 | Wellpoint Federal | A and B and HHH MAC | RI |
| 14211 | Wellpoint Federal | A and B and HHH MAC | MA |
| 14311 | Wellpoint Federal | A and B and HHH MAC | NH |
| 14511 | Wellpoint Federal | A and B and HHH MAC | VT |
| 14111 | Wellpoint Federal | A and B and HHH MAC | ME |
| 14112 | Wellpoint Federal | A and B and HHH MAC | ME |
| 14212 | Wellpoint Federal | A and B and HHH MAC | MA |
| 14312 | Wellpoint Federal | A and B and HHH MAC | NH |
| 14512 | Wellpoint Federal | A and B and HHH MAC | VT |
| 14412 | Wellpoint Federal | A and B and HHH MAC | RI |
Billing and coding: diagnoses and procedure codes
Since 2019 the codes live in the companion article rather than the LCD. Billing and Coding A56766 (Billing and Coding: Incision and Drainage (I&D) of Abscess of Skin, Subcutaneous and Accessory Structures) carries the diagnosis and procedure lists the contractor loads as the claims edit. CPT codes are shown as bare numbers because the descriptors are licensed by the AMA; HCPCS Level II descriptors are public and shown.
A56766: Billing and Coding: Incision and Drainage (I&D) of Abscess of Skin, Subcutaneous and Accessory Structures (Billing and Coding, effective 2026-04-01)
- Covered ICD-10-CM codes
- 589
- 1 group
- Non-covered ICD-10-CM codes
- 0
- Procedure codes listed
- 7
- Full article
- cms.gov record
| ICD-10-CM | Description (FY2027) |
|---|---|
| J34.0 | — |
| K11.3 | — |
| K12.2 | — |
| K13.0 | — |
| K61.31 | — |
| K61.39 | — |
| K61.5 | — |
| K68.11 | — |
| K68.12 | — |
| K68.19 | — |
| K68.3 | — |
| K75.0 | — |
| L02.01 | — |
| L02.02 | — |
| L02.03 | — |
| L02.11 | — |
| L02.12 | — |
| L02.13 | — |
| L02.211 | — |
| L02.212 | — |
| L02.213 | — |
| L02.214 | — |
| L02.215 | — |
| L02.216 | — |
Procedure codes: 10060, 10061, 10080, 10081, 10140, 10160, 10180.
Coverage indications, limitations and medical necessity
Abstract:
This local coverage determination (LCD) specifies the indications and limitations for incision and drainage services. Incision and drainage is a covered procedure for treating abscesses. Incision and drainage of non-abscess fluid collections is covered when medically necessary due to pain or inflammation. Repeated incision and drainage is not expected, however, in the case of hidradenitis, this may be experienced but the provider must document the reason that more definitive therapy is not appropriate.
Podiatrists are limited in scope of practice by State law. Only those ICD-10-CM codes that are appropriate for the scope of practice will be accepted as reimbursable.
The patient's medical record must contain documentation that fully supports the medical necessity for the incision and drainage as well as a full description of the procedure performed.
Indications:
Incision and drainage or puncture aspiration describes the mechanical task of introducing a sharp sterile instrument into a discrete subcutaneous collection of pus, blood or other fluid for the purpose of removing from the lesion said pus, bacteria, blood, necrotic tissue, or other toxins, to promote resolution of infection, inflammation, and pain or to obtain material for diagnostic analysis.
An abscess is a circumscribed collection of pus of any size in any location, and as such represents an infection. Abscesses usually exhibit one or more of the following clinical findings: redness, warmth, tenderness, fluctuance, edema, lymphangitis. A lesion not exhibiting such signs or symptoms and that does not contain pus or infected purulent fluid is not an abscess, but may be some other type of process requiring incision and drainage such as a hematoma, seroma, bulla or cyst. A simple abscess generally requires only a single puncture or single incision. A complicated abscess with infection and necrosis usually requires more effort to treat. Examples of complicated abscesses are the following: an abscess with 3-4 tracks requiring breaking up of loculated compartments; an abscess requiring undermining of the skin and subcutaneous tissue and extensive laying open of the cavity. In these circumstances, at minimum, locally injected anesthesia is usually required.
Incision and drainage services are covered for treating abscesses (e.g., carbuncle, suppurative hidradenitis, cutaneous or subcutaneous abscess, cyst, furuncle, post-operative wound infections, or paronychia). Incision and drainage of hematomas, seromas, cysts or other pathologic fluid collections are covered when medically necessary due to pain, inflammation or infection.
Paronychia is an acute or chronic inflammation of the periungual tissues, which may be associated with infection, purulence and granulation tissue. Acute paronychia is treated by relieving pressure on the soft tissues either by packing or by removing a section of nail plate and packing. This usually allows for sufficient drainage to avoid the need for incision and drainage of the soft tissues. This technique is used in the foot with some modifications including the removal of larger sections of nail plate and correction of pathomechanical foot function. However, this technique does not involve the direct incision and drainage of a discrete soft tissue pus or fluid collection and should not be billed as an incision and drainage service.
Limitations:
Incision and drainage of an abscess is limited to lesions with documented abscess and/or pus collection and is not appropriate for treatment of blisters, cysts (including sebaceous cyst), or other fluid collections without the documented presence of discrete abscess, pus collection, pain, infection or inflammation.
If there is inflammation adjacent to a nail or ingrown nail and the only service provided is trimming the edge of the nail, the incision and drainage codes should not be used. Trimming the nail to prevent recurrence of paronychia is considered to be routine foot care, which has limited coverage.
Incision and drainage services are not payable for treatment of blisters unless there is superinfection with pus and abscess formation.
Providers performing permanent correction of recurring ingrown nail by nail resection (plate, bed, and nail matrix, partial or complete) or by wedge excision of the nail lip, should not bill incision and drainage services. Removal of lytic fragments of the nail plate to relieve symptoms of inflammation without infection of the soft tissues is a routine foot care procedure.
Summary of evidence (opening)
N/A
the full summary and analysis of evidence are in the CMS record.
Dates, lineage and related policies
- Original determination effective
- 2015-10-01
- Current revision effective
- 2026-04-01
- Last reviewed by the contractor
- 2017-03-09
- MCD version
- 27
- Derived from
- L28490
Using this policy on a claim
Match the documented indication to the covered indications above before the service is scheduled, carry a diagnosis from the article's covered list on the claim line, and keep the elements the documentation section asks for in the record, because the contractor can request it later through medical review. A denial under this policy arrives as CARC 50 with remark N115; the LCD lookup guide walks through the appeal path and the Advance Beneficiary Notice rules, and the Wellpoint Federal hub lists every other active policy from the same contractor.
Frequently asked questions
What does LCD L33563 cover?
This local coverage determination (LCD) specifies the indications and limitations for incision and drainage services. Incision and drainage is a covered procedure for treating abscesses. Incision and drainage of non-abscess fluid collections is covered when medically necessary due to pain or inflammation. Repeated incision and drainage is not expected, however, in the case of hidradenitis, this may be experienced… The full indications and limitations are reproduced on this page from the CMS Medicare Coverage Database export of September 24, 2026.
Which states does LCD L33563 apply to?
Wellpoint Federal applies it to Medicare claims in CT, DN, IL, MA, ME, MN, NH, NY, QN, RI, UN, VT, WI. A Local Coverage Determination binds only the contractor that wrote it; the same service in another jurisdiction is judged under that contractor's own policy or, where none exists, claim by claim.
Which diagnosis codes support medical necessity under LCD L33563?
The companion billing and coding article A56766 lists 589 ICD-10-CM codes in 1 group that support medical necessity; the first 24 appear on this page and the complete list is in the article on cms.gov.
How do I appeal a denial under LCD L33563?
The remittance carries claim adjustment reason code 50 with remark code N115, naming the LCD. Compare the documented indication with the policy's covered indications and the article's diagnosis list, then file a redetermination within 120 days with the record attached; if the service genuinely falls outside the policy, the patient can be billed only when a valid Advance Beneficiary Notice was obtained before the service.
Sources
Every figure on this page is taken from the CMS publications below, as released by the Centers for Medicare & Medicaid Services. Projection built 2026-10-02. Verify against the primary file before billing or contracting decisions.
- Medicare Coverage Database, current LCD exportVersion MCD release 2026-09-24 · effective 2026-09-20 · file lcd.csvSHA-256 2fcc4251b6ddd1eb…
- Medicare Coverage Database, current Billing and Coding Articles exportVersion MCD release 2026-09-24 · effective 2026-09-20 · file article.csvSHA-256 f31932f1df3b4035…
- ICD-10-CM FY2027 code descriptionsVersion FY2027 · effective 2026-10-01 · file icd10cm_codes_2027.txtSHA-256 3c0583a38ee0e848…
Disclaimer
The policy text and code lists are reproduced from the CMS Medicare Coverage Database export as an operational reference. Verify against the current LCD and article on cms.gov before billing; coverage depends on the full record and the contractor. Not legal, clinical or billing advice.