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LCD L38551: Transanal Endoscopic Surgery (TES)

LCD L38551, Transanal Endoscopic Surgery (TES), is the Local Coverage Determination that Palmetto GBA applies to claims from 7 states (AL, GA, NC, SC, TN, VA, WV), effective 2024-12-19 and first in force 2020-10-11. The policy text runs 240 words, and its billing and coding article A58000 lists 6 ICD-10-CM codes that support medical necessity for 1 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
2024-12-19
Original effective
2020-10-11
Policy text
240 words
Covered ICD-10 codes (articles)
6

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 L38551
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 A58000 (Billing and Coding: Transanal Endoscopic Surgery (TES)) 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.

A58000: Billing and Coding: Transanal Endoscopic Surgery (TES) (Billing and Coding)

Covered ICD-10-CM codes
6
1 group
Non-covered ICD-10-CM codes
0
Procedure codes listed
1
Full article
cms.gov record
First 6 covered ICD-10-CM codes in A58000
ICD-10-CMDescription (FY2027)
C20Malignant neoplasm of rectum
D01.3—
D12.8—
D12.9—
K62.1—
K62.82—

Procedure codes: 0184T.

Coverage indications, limitations and medical necessity

Transanal endoscopic surgery (TES) may be considered medically necessary for treatment of rectal adenomas, including recurrent adenomas that cannot be removed using other means of local excision.

TES may be considered medically necessary for treatment of clinical stage T1 rectal adenocarcinomas that cannot be removed using other means of local excision and that meet all of the following criteria:

• Located within 8 cm of the anal verge

• Less than 3 cm in size

• Well-to-moderately differentiated (G1 or G2) by biopsy

• Without lymphadenopathy

• Less than 30% of the circumference of the rectum

TES may be considered medically necessary for treatment of rectal carcinoid tumors that cannot be removed using other means of local excision and that meet all of the following criteria:

• Located within 8 cm of the anal verge

• Less than 2 cm in size

• No radiologic evidence of metastasis

• Less than 30% of the circumference of the rectum

TES is considered investigational for treatment of rectal tumors that do not meet the criteria noted.

Credentialing and Accreditation Standards

Optimal outcomes of TES procedures depend on the knowledge, skill and experience of the provider. Services will be considered medically reasonable and necessary only if performed by appropriately trained providers.

FDA Indications

Transanal Endoscopic microsurgery (TEM) combination system and instrument set. 510K Summary: K000180.

GelPOINT Path Transanal Access Platform. 510K Summary: K133393 .

GelPOINT Path Transanal Access Platform. 510K Summary: K171701 .

Summary of evidence (opening)

TES is a minimally invasive approach to local excision of rectal lesions. It has been used in benign conditions such as large rectal polyps (that cannot be removed through a colonoscope), retrorectal masses, rectal strictures, rectal fistulae, pelvic abscesses, and in malignant conditions (e.g., malignant polyps). Use of transanal endoscopic microsurgery (TEMS) for resection of rectal cancers is more controversial. TEMS can avoid morbidity and mortality associated with major rectal surgery, including the fecal incontinence related to stretching of the anal sphincter, and can be performed under general or regional anesthesia.

The TEMS system has a specialized magnifying rectoscope with ports for insufflation, instrumentation, and irrigation. This procedure has been available for over 20 years in Europe but has not been widely used in the United States. Two reasons for this slow adoption are the steep learning curve for the procedure and the limited indications. For example, most rectal polyps can be removed endoscopically, and many rectal cancers need a wide excision and are thus not amenable to local resection.

Transanal minimally invasive surgery (TAMIS) was introduced in 2010 and utilizes a single incision laparoscopic surgery port. The advantage of this technique is lower cost and ease of patient positioning. TAMIS appears to require less training and skill for surgeons already proficient in single incision laparoscopic surgery due to its utilization of the same platform and instruments.

The most common treatment for rectal cancer is surgery; the technique chosen will depend on several factors. The size and location of the tumor, evidence of local or distal spread, and patient characteristics and goals are all attributes that will affect treatment approach. Open, wide resections have the highest cure rate but may also have significant adverse effects. Most patients find the potential adverse effects of lifelong colostomy and/or bowel, bladder, or sexual dysfunction acceptable in the face of a terminal illness. Laparoscopic-assisted surgery, with lymph node dissection as indicated, is technically difficult in the pelvic region but is being investigated as a less invasive alternative to open resection.

The contractor cites 35 sources in the bibliography; the full summary and analysis of evidence are in the CMS record.

Dates, lineage and related policies

Original determination effective
2020-10-11
Current revision effective
2024-12-19
Last reviewed by the contractor
2024-11-11
MCD version
14

Other related documents: A58300 (Response to Comments).

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 L38551 cover?

Transanal endoscopic surgery (TES) may be considered medically necessary for treatment of rectal adenomas, including recurrent adenomas that cannot be removed using other means of local excision. 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 L38551 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 L38551?

The companion billing and coding article A58000 lists 6 ICD-10-CM codes in 1 group that support medical necessity; the first 6 appear on this page and the complete list is in the article on cms.gov.

How do I appeal a denial under LCD L38551?

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.