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LCD L36427: Wireless Capsule Endoscopy

LCD L36427, Wireless Capsule Endoscopy, is the Local Coverage Determination that Palmetto GBA applies to claims from 7 states (AL, GA, NC, SC, TN, VA, WV), effective 2021-10-28 and first in force 2016-01-25. The policy text runs 924 words, and its billing and coding article A56727 lists 88 ICD-10-CM codes that support medical necessity for 2 procedure codes. 2 other contractors publish a policy with the same title, so the criteria that apply depend on where the service is furnished.

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
2021-10-28
Original effective
2016-01-25
Policy text
924 words
Covered ICD-10 codes (articles)
88

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 L36427
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 A56727 (Billing and Coding: Wireless Capsule Endoscopy) 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.

A56727: Billing and Coding: Wireless Capsule Endoscopy (Billing and Coding, effective 2025-10-01)

Covered ICD-10-CM codes
88
2 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 A56727
ICD-10-CMDescription (FY2027)
C7A.010—
C7A.011—
C7A.012—
C7A.019—
D3A.010—
D3A.011—
D3A.012—
D3A.019—
D50.0—
D50.9—
D62Acute posthemorrhagic anemia
D72.89—
I85.00—
I85.01—
I85.11—
K50.00—
K50.011—
K50.014—
K50.018—
K50.019—
K50.111—
K50.114—
K50.118—
K50.119—

Procedure codes: 91110, 91111.

Coverage indications, limitations and medical necessity

Wireless capsule endoscopic imaging is intended as an adjunctive tool in the detection of certain gastrointestinal (GI) conditions. This procedure requires that a patient ingest a small capsule containing a disposable light source, miniature color video camera, battery, antenna and a data transmitter. The self-contained capsule is made of specially sealed biocompatible material that is resistant to the digestive fluids throughout the GI tract. Following ingestion of the capsule, natural contraction and relaxation of the GI tract propels the camera forward. The camera contained in the capsule records images of the intestinal mucosa as it travels the length of the digestive system. During the entire procedure, which normally takes approximately 8 hours, the patient wears a data recorder around the waist, which captures and stores the images transmitted by the capsule's camera. After completion of the procedure, the patient data recorder is connected to a computer workstation where the images are downloaded, reviewed, and interpreted by the physician. The capsule is designed to be disposable and is excreted naturally from the body.

Indications for wireless capsule endoscopy:

• For investigating suspected small intestinal bleeding in persons with objective evidence of recurrent, obscure GI bleeding (e.g., persistent or recurrent iron-deficiency anemia and/or persistent or recurrent positive fecal occult blood test (FOBT), or visible bleeding) who have had upper and lower GI endoscopies within the past 12 months (esophagogastroduodenoscopy (EGD) and colonoscopy) that have failed to identify a bleeding source;

• For evaluation of regional non-metastatic carcinoid tumors of the small bowel in persons with carcinoid syndrome;

• For evaluation of persons with celiac disease with a positive serology and negative biopsy;

• For re-evaluation of persons with celiac disease who remain symptomatic despite treatment and there is no suspected or confirmed GI obstruction, stricture, or fistulae;

• For initial diagnosis in persons with suspected Crohn's disease (abdominal pain or diarrhea plus 1 or more signs of inflammation (e.g., fever, elevated white blood cell (WBC) count, elevated erythrocyte sedimentation rate, or bleeding) without evidence of disease on conventional diagnostic tests, including small-bowel follow-through or abdominal computed tomography (CT) scan/CT enterography and upper and lower endoscopy (EGD and colonoscopy);

• For re-evaluation of persons with Crohn's disease who remain symptomatic despite treatment and there is no suspected or confirmed GI obstruction, stricture, or fistulae;

• For surveillance of small intestinal tumors in persons with Lynch syndrome, Peutz-Jeghers syndrome and other polyposis syndromes affecting the small bowel; or

• For screening or surveillance of esophageal varices.

Limitations of use:

Wireless capsule endoscopy:

• is NOT indicated for repeat use to verify the effectiveness of surgery.

• is NOT indicated for use as a screening test (other than esophageal varices) and is NOT reimbursable for colorectal cancer screening.

• is NOT indicated for use as an initial test in diagnosing GI bleeding.

• is NOT indicated for use for evaluating intussusception.

• is NOT indicated for use for evaluating the colon, as it is not indicated for the confirmation of lesions of pathology normally within the reach of upper and lower endoscopes (lesions proximal to the ligament of Treitz, or distal to the ileum).

• is NOT indicated for use for evaluating diseases involving the esophagus other than esophageal varices.

• is NOT indicated for use for follow-up of persons with known small bowel disease other than Crohn's disease.

• is NOT indicated for use in confirming pathology identified by other diagnostic means.

• is NOT indicated for use in evaluating the stomach, as it is not indicated for the confirmation of lesions of pathology normally within the reach of upper and lower endoscopes (lesions proximal to the ligament of Treitz, or distal to the ileum).

• is NOT indicated for use in investigating duodenal lymphocytosis, small bowel neoplasm, or suspected irritable bowel syndrome (IBS).

Wireless capsule endoscopy is covered only for services using United States (U.S.) Food and Drug Administration (FDA) approved devices and is not indicated for patients in whom a GI blockage is known or suspected, who have a significantly narrow small bowel, or have a known or suspected abnormal connection between the bowel and/or another organ (e.g., strictures or fistulas). An X-ray exam of the small bowel should be done if there is concern that it may be too narrow for the camera to pass through.

Wireless capsule endoscopy should not be employed in patients with a cardiac pacemaker, or other implanted electromedical devices, or in patients who are pregnant.

In addition to any specific limitations noted above, wireless capsule endoscopy is limited as follows:

• This test is only covered when performed by physicians trained in endoscopy or for independent diagnostic testing facilities (IDTF), which are under the general supervision of a physician trained in endoscopy procedures.

• The capsule should be ingested at least 12 hours after the last meal, and the patient should not be allowed to eat for an additional 3 hours after the capsule is swallowed. Stool in the bowel may cause obstruction of images and result in failure of the study.

Medicare would not expect to see a second capsule administered per episode of illness unless it was to guarantee an adequate examination (e.g., the initial capsule does not penetrate the pylorus). Please note that any other procedures that are employed to ensure proper passage of the capsule must be reasonable and necessary and documented appropriately.

Medicare expects repeat wireless capsule endoscopic studies for any patient to be for medically reasonable and necessary clinical circumstances consistent with accepted standards of medical practice and that the medical records demonstrate such.

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
2016-01-25
Current revision effective
2021-10-28
Last reviewed by the contractor
2021-09-21
MCD version
38

The contractor lists one National Coverage Determination as related: NCD 100.2 Endoscopy. 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.

The same policy title at other contractors

Contractors often adopt each other's policies and then revise them separately, so the criteria and the diagnosis lists drift apart. The topic comparison lines up every version.

Frequently asked questions

What does LCD L36427 cover?

Wireless capsule endoscopic imaging is intended as an adjunctive tool in the detection of certain gastrointestinal (GI) conditions. This procedure requires that a patient ingest a small capsule containing a disposable light source, miniature color video camera, battery, antenna and a data transmitter. The self-contained capsule is made of specially sealed biocompatible material that is resistant to the digestive… 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 L36427 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 L36427?

The companion billing and coding article A56727 lists 88 ICD-10-CM codes in 2 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 L36427?

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.