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LCD L34576: Laparoscopic Sleeve Gastrectomy for Severe Obesity

LCD L34576, Laparoscopic Sleeve Gastrectomy for Severe Obesity, is the Local Coverage Determination that Palmetto GBA applies to claims from 7 states (AL, GA, NC, SC, TN, VA, WV), effective 2025-07-10 and first in force 2015-10-01. The policy text runs 944 words, and its billing and coding article A56852 lists 568 ICD-10-CM codes that support medical necessity for 2 procedure codes. No other contractor publishes a policy with this title.

QuickIntell editorial content · Legacy registry date · Review not verified

Data effective
Data currency: Medicare Coverage Database LCD export release of September 24, 2026 (effective September 20, 2026). Next CMS release: weekly (Thursdays) for the MCD.
Contractor
Palmetto GBA
States and territories
7
AL GA NC SC TN VA WV
Revision effective
2025-07-10
Original effective
2015-10-01
Policy text
944 words
Covered ICD-10 codes (articles)
568

Where this LCD applies

Each contract number is a jurisdiction on the remittance; the policy binds claims processed under these contracts and no others.

Contracts that apply LCD L34576
ContractContractorTypeStates
11201Palmetto GBAA and B and HHH MACSC
11301Palmetto GBAA and B and HHH MACVA
11401Palmetto GBAA and B and HHH MACWV
11501Palmetto GBAA and B and HHH MACNC
11202Palmetto GBAA and B and HHH MACSC
11302Palmetto GBAA and B and HHH MACVA
11402Palmetto GBAA and B and HHH MACWV
11502Palmetto GBAA and B and HHH MACNC
10111Palmetto GBAA and B MACAL
10211Palmetto GBAA and B MACGA
10311Palmetto GBAA and B MACTN
10112Palmetto GBAA and B MACAL
10212Palmetto GBAA and B MACGA
10312Palmetto GBAA and B MACTN

Billing and coding: diagnoses and procedure codes

Since 2019 the codes live in the companion article rather than the LCD. Billing and Coding A56852 (Billing and Coding: Laparoscopic Sleeve Gastrectomy for Severe Obesity) 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.

A56852: Billing and Coding: Laparoscopic Sleeve Gastrectomy for Severe Obesity (Billing and Coding, effective 2026-10-01)

Covered ICD-10-CM codes
568
3 groups
Non-covered ICD-10-CM codes
0
Procedure codes listed
2
Full article
cms.gov record
First 24 covered ICD-10-CM codes in A56852
ICD-10-CMDescription (FY2027)
E08.00—
E08.01—
E08.10—
E08.11—
E08.21—
E08.22—
E08.29—
E08.311—
E08.3211—
E08.3212—
E08.3213—
E08.3291—
E08.3292—
E08.3293—
E08.3311—
E08.3312—
E08.3313—
E08.3391—
E08.3392—
E08.3393—
E08.3411—
E08.3412—
E08.3413—
E08.3491—

Procedure codes: 43775, 43889.

Coverage indications, limitations and medical necessity

The sleeve gastrectomy (SG) is a surgical procedure performed in either an open or laparoscopic manner. The surgery involves excision of the lateral aspect of the stomach, leaving a much reduced, tubular stomach. When performed laparoscopically, the term laparoscopic sleeve gastrectomy (LSG) is used. Presently, LSG is being used as a stand-alone approach to bariatric surgery. By reducing gastric capacity, there is both short- and long-term weight loss. A stand-alone SG is sometimes referred to as an isolated SG. There are variations in the detail and technique for the SG procedure itself. LSG has been gaining popularity over the last few years with increased experience among surgeons and the procedure has taken its place among other bariatric surgical procedures for extreme obesity. Unlike some bariatric surgical procedures, this technique is irreversible.

Obesity, defined as a body mass index (BMI) ≥ 30kg/m 2 , is recognized as an important risk factor for morbidity and mortality associated with a number of chronic diseases, such as heart disease and diabetes (Flegal, 2010). The Centers for Disease Control and Prevention (CDC) reported that obesity rates in the United States have increased dramatically over the last 30 years, and obesity is now epidemic in the United States (Kahn, 2009). For adults 60 years and older, the prevalence of obesity is about 37% among men and 34% among women (NHANES - National Health and Nutrition Examination Survey). Obesity may be further classified according to the National Institutes of Health (NIH):

• Class I Obesity = BMI 30.0-34.9 kg/m²

• Class II Obesity = BMI 35.0-39.9 kg/m²

• Class III (Extreme) Obesity = BMI ≥ 40.0 kg/m²

The Centers for Medicare and Medicaid Services (CMS) has recognized the importance of screening and treating obesity and recently provided Medicare coverage for intensive behavioral therapy for obesity. CMS also has allowed national coverage for some bariatric surgical procedures for Class II and Class III obesity:

• Open and laparoscopic Roux-en-Y gastric bypass (RYGBP)

• Laparoscopic adjustable gastric banding (LAGB) and

• Open and laparoscopic biliopancreatic diversion with duodenal switch (BPD/DS) or gastric reduction duodenal switch (BPD/GRDS).

LSG was specifically not approved under past National Coverage Determinations (NCDs). Recently, under a national coverage analysis (Decision Memo for Bariatric Surgery for the Treatment of Morbid Obesity CAG-00250R2) CMS has made the decision to allow discretion for stand-alone LSG coverage to be at the local contractor level. Open SG is specifically not covered in the CMS NCD.

This A/B MAC is concerned that there are no randomized controlled trials (RCTs) that specifically evaluated adults ≥ 61 years, few large-scale trials on stand-alone LSG and few, if any, long-term trials. This A/B MAC's medical directors have also discussed the surgery with subject matter experts in our jurisdiction. Given the strengths and limitations of the evidence, This A/B MAC will cover LSG only when ALL of the following criteria are met:

• Patient has a BMI ≥ 35.0 kg/m² (Class II or Class III obesity)

• Patient has at least 1 co-morbidity related to obesity, and,

• Active participation within the last 12 months prior to bariatric surgery in a weight-management program that is supervised by a physician or other health care professionals. The weight-management program must include monthly documentation of ALL of the following components:

• weight

• current dietary regimen

• physical activity (e.g., exercise program)

Physician-supervised programs consisting exclusively of pharmacological management are not sufficient to meet this requirement.

• A thorough multidisciplinary evaluation within the previous 6 months which includes ALL of the following:

• an evaluation by a bariatric surgeon recommending surgical treatment, including a description of the proposed procedure(s)

• a primary care provider referral

• evaluation for bariatric surgery by a mental health provider including a statement regarding motivation and ability to follow post-surgical requirements

• a nutritional evaluation by a physician or registered dietician

• For dates of service prior to September 24, 2013, LSG shall be furnished in a CMS approved bariatric facility.

• For dates of service on or after September 24, 2013, facility certification shall no longer be required for coverage of covered bariatric procedures.

• For a patient with age greater than 61 years: In recognition of both the need to provide obesity treatment and the potential for increased risk and decreased benefit in older patients, this A/B MAC will cover LSG if, in addition to the criteria established above, the following are met:

1. In addition to the nutritional and psychological evaluation previously outlined in this local coverage determination (LCD), there must be evidence documented in the patient's medical record that the patient is able to personally understand the nature and potential complications of surgery and has the capacity to follow the postoperative care and nutritional requirements, and the patient must sign the informed consent personally.

2. Indications for surgery in this age group will include at least 1 of the following serious comorbidities:

• Diabetes Mellitus

• Hypertension not well controlled with a single medication

• Hyperlipidemia requiring more than 1 medication to manage

• Joint disease requiring surgical intervention

• Gastroesophageal Reflux Disease (GERD) refractory to a 2-month trial of appropriate treatment and medications

• Obstructive Sleep Apnea requiring continuous positive airway pressure (CPAP), OR

• Potential organ transplant candidacy at a United Network for Organ Sharing (UNOS)-certified center whereby a BMI ≥ 35 is required.

3. Contraindications include:

• Dementia to the extent that self-care is precluded (including exercise and nutritional care)

• Requirement for home oxygen therapy

• Organ failure unless the patient is a transplant candidate to replace the failing organ at an UNOS-certified center.

The information above must be documented in the patient's medical record and available on request.

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
2025-07-10
Last reviewed by the contractor
2025-06-03
MCD version
72
Derived from
L32975

The contractor lists one National Coverage Determination as related: NCD 100.1 Bariatric Surgery for Treatment of Co-Morbid Conditions Related to Morbid Obesity. Where an NCD speaks, it controls; the LCD can only address what the NCD leaves open.

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 Palmetto GBA hub lists every other active policy from the same contractor.

Frequently asked questions

What does LCD L34576 cover?

The sleeve gastrectomy (SG) is a surgical procedure performed in either an open or laparoscopic manner. The surgery involves excision of the lateral aspect of the stomach, leaving a much reduced, tubular stomach. When performed laparoscopically, the term laparoscopic sleeve gastrectomy (LSG) is used. Presently, LSG is being used as a stand-alone approach to bariatric surgery. By reducing gastric capacity, there is… 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 L34576 apply to?

Palmetto GBA applies it to Medicare claims in AL, GA, NC, SC, TN, VA, WV. 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 L34576?

The companion billing and coding article A56852 lists 568 ICD-10-CM codes in 3 groups 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 L34576?

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.

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.