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LCD L38792: Dexamethasone Intracanalicular Ophthalmic Insert (Dextenza®)

LCD L38792, Dexamethasone Intracanalicular Ophthalmic Insert (Dextenza®), is the Local Coverage Determination that Palmetto GBA applies to claims from 7 states (AL, GA, NC, SC, TN, VA, WV), effective 2022-05-26 and first in force 2021-02-07. The policy text runs 288 words. 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
2022-05-26
Original effective
2021-02-07
Policy text
288 words
Covered ICD-10 codes (articles)
0

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 L38792
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 A58392 (Billing and Coding: Dexamethasone Intracanalicular Ophthalmic Insert (Dextenza®)) 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.

A58392: Billing and Coding: Dexamethasone Intracanalicular Ophthalmic Insert (Dextenza®) (Billing and Coding, effective 2025-01-01)

Covered ICD-10-CM codes
0
0 groups
Non-covered ICD-10-CM codes
0
Procedure codes listed
36
Full article
cms.gov record

Procedure codes: 65800, 65810, 65815, 65820, 65850, 65855, 65860, 65865, 65870, 65875, 65880, 66170, 66172, 66180, 66183, 66184, 66185, 66820, 66821, 66825, 66982, 66984, 67005, 67010, 67015, 67025, 67027, 67028, 67030, 67031, 67036, 67039, 67040, 67041, 67042, 67043.

Coverage indications, limitations and medical necessity

Background :

Dextenza ® (Ocular Therapeutix, Inc., Bedford, MA, USA) is a resorbable hydrogel corticosteroid implant indicated for treating ocular inflammation and pain after ophthalmic surgery. After surgery, the insert is placed in the lower lacrimal punctum and into the canaliculus. The insert releases 0.4 mg of dexamethasone over 30 days onto the eye surface. It is made from a polyethylene glycol-based hydrogel conjugated with fluorescein, which is resorbable and does not require removal. Anterior chamber inflammation (10%) and elevated intraocular pressure (IOP) (6%) were the most common adverse reactions. IOP should be monitored during treatment. Dextenza ® should not be used in patients with active corneal, conjunctival, or canalicular infections, including epithelial herpes simplex keratitis (dendritic keratitis), vaccinia, varicella, mycobacterial infections, fungal eye diseases, and dacryocystitis.

Dextenza® is an alternative to topical corticosteroid preparations (e.g., eye drops) used to reduce pain and inflammation after cataract surgery. Persistent inflammation may lead to complications, such as increased IOP, cystoid macular edema, secondary glaucoma, delayed recovery, ocular pain, and reduced vision. However, patients may have difficulty delivering the correct dose when using topical eye drop preparations; eye drops may need to be tapered over time and are associated with poor patient adherence. 1 The elderly population, in particular, typically has more difficulty using eye drops to deliver topical corticosteroids after eye surgery.

Coverage Indications and limitations :

Palmetto GBA considers the use of the Dextenza® dexamethasone insert reasonable and necessary for the treatment of ocular inflammation and pain following ophthalmic surgery.

Dextenza® is contraindicated in patients with the following conditions:

• active corneal, conjunctival or canalicular infections, including epithelial herpes simplex keratitis (dendritic keratitis), vaccinia, varicella

• mycobacterial infections of the eye

• fungal diseases of the eye

• dacryocystitis.

Summary of evidence (opening)

An integrated assessment of Dextenza's® efficacy in ophthalmic surgery was demonstrated across 3 Phase 3 trials that included a total of 926 subjects (n=541, Dextenza®, n=385, placebo insert). 1-3 An ad hoc pooled analysis of the 3 Phase 3 studies demonstrated patients receiving Dextenza® achieved statistically, significantly superior outcomes compared to patients receiving placebo vehicle in both primary efficacy endpoints, with 42.7% of Dextenza®-treated patients observed to have absence of anterior chamber cells (score of 0) at Day 14 (placebo: 27.5%; P 1%) were increased (IOP), anterior chamber inflammation including iritis and iridocyclitis, eye inflammation, reduced visual acuity, corneal edema, and cystoid macular edema. There were no treatment-related serious adverse events. 1-3

Physician-administered Dextenza® delivers a 30-day tapered dose of dexamethasone to the eye (consistent with current standard of care tapered dosing regimen of patient-administered topical steroid drops). 1,2 Physician administration of Dextenza® avoids risk of improper patient installation techniques with post-op topical eye drop therapy, complicated steroid tapering dosing regimens for patient administration, manual dexterity challenges associated with older age, 5 and may reduce the potential for ophthalmic sequelae typically associated with poor patient adherence during the critical post-operative care period. Persistent ocular inflammation can potentially increase the risk for secondary ocular complications, such as increased IOP, cystoid macular edema (CME), posterior synechiae formation, posterior capsule opacification, secondary glaucoma, delayed recovery, ocular pain, and reduced visual outcomes, whereas untreated pain can affect overall patient surgical satisfaction. 6-8

Dexamethasone is a potent corticosteroid, and the Dextenza® Phase 3 data support the utility of a sustained-release intracanalicular insert delivery approach of dexamethasone to the ocular surface following ocular surgery. 1,2 Relevant to IOP increases associated with ophthalmic surgery, the overall safety outcomes of an ad hoc pooled analysis of the Phase 3 Dextenza® studies showed IOP elevation with Dextenza® (6.3%) compared to placebo (3.4%); 3 of all events, only 1 IOP increase in the dexamethasone insert arm (0.2%) out of 538 patients across 3 studies was considered by the investigator to be related to treatment. 1-3 It is hypothesized the observed rates of IOP increase demonstrated with Dextenza® compared to placebo in the Phase 3 studies may potentially be associated with the reduced Cmax of sustained release preparations (e.g., Dextenza®), as compared to topical steroid therapy. 1

Additionally, the benefits of consistent tapered dosing with a dexamethasone-eluting intracanalicular insert is potentially clinically meaningful in the context of the demonstrated poor bioavailability of topical steroid eye drop preparations. 9 The pharmacokinetic properties of the drug-eluting intracanalicular insert, in preclinical animal models, suggests sustained and tapered drug release into the tear film may minimize the potential of ocular rebound inflammation and demonstrate dexamethasone is eluted directionally and unilaterally towards the ocular surface, indicating limited systemic exposure and reduced wasted drug product. 10

The contractor cites 14 sources in the bibliography; the full summary and analysis of evidence are in the CMS record.

Dates, lineage and related policies

Original determination effective
2021-02-07
Current revision effective
2022-05-26
Last reviewed by the contractor
2022-04-12
MCD version
6

Other related documents: A58548 (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 L38792 cover?

Dextenza ® (Ocular Therapeutix, Inc., Bedford, MA, USA) is a resorbable hydrogel corticosteroid implant indicated for treating ocular inflammation and pain after ophthalmic surgery. After surgery, the insert is placed in the lower lacrimal punctum and into the canaliculus. The insert releases 0.4 mg of dexamethasone over 30 days onto the eye surface. It is made from a polyethylene glycol-based hydrogel conjugated… 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 L38792 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 L38792?

The current export links no billing and coding article with a diagnosis list to this LCD, so coverage is decided on the indications in the policy text and the documentation in the record rather than by an automated diagnosis edit.

How do I appeal a denial under LCD L38792?

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.