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 |
|---|---|---|---|
| 11201 | Palmetto GBA | A and B and HHH MAC | SC |
| 11301 | Palmetto GBA | A and B and HHH MAC | VA |
| 11401 | Palmetto GBA | A and B and HHH MAC | WV |
| 11501 | Palmetto GBA | A and B and HHH MAC | NC |
| 11202 | Palmetto GBA | A and B and HHH MAC | SC |
| 11302 | Palmetto GBA | A and B and HHH MAC | VA |
| 11402 | Palmetto GBA | A and B and HHH MAC | WV |
| 11502 | Palmetto GBA | A and B and HHH MAC | NC |
| 10111 | Palmetto GBA | A and B MAC | AL |
| 10211 | Palmetto GBA | A and B MAC | GA |
| 10311 | Palmetto GBA | A and B MAC | TN |
| 10112 | Palmetto GBA | A and B MAC | AL |
| 10212 | Palmetto GBA | A and B MAC | GA |
| 10312 | Palmetto GBA | A and B MAC | TN |
Billing and coding: diagnoses and procedure codes
Since 2019 the codes live in the companion article rather than the LCD. Billing and Coding A59028 (Billing and Coding: Surgical Treatment of Nails) 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.
A59028: Billing and Coding: Surgical Treatment of Nails (Billing and Coding, effective 2026-01-01)
- Covered ICD-10-CM codes
- 392
- 1 group
- Non-covered ICD-10-CM codes
- 0
- Procedure codes listed
- 4
- Full article
- cms.gov record
| ICD-10-CM | Description (FY2027) |
|---|---|
| B35.1 | — |
| I96 | Gangrene, not elsewhere classified |
| L03.011 | — |
| L03.012 | — |
| L03.031 | — |
| L03.032 | — |
| L40.0 | — |
| L40.1 | — |
| L40.2 | — |
| L40.3 | — |
| L40.4 | — |
| L40.8 | — |
| L43.0 | — |
| L43.3 | — |
| L43.8 | — |
| L60.0 | — |
| L60.1 | — |
| L60.2 | — |
| L60.3 | — |
| L60.4 | — |
| L60.5 | — |
| L60.8 | — |
| Q84.3 | — |
| Q84.4 | — |
Procedure codes: 11730, 11732, 11750, 11765.
Coverage indications, limitations and medical necessity
Nail surgery is often performed to remove benign and malignant nail tumors, relieve pain caused by ingrown and traumatized nails, manage disease processes, and diagnose challenging lesions and dystrophies. 8
An ingrown nail (onychocryptosis) is a condition which results in the growth of the nail edge into the surrounding soft tissue. Ingrown toenails present with a varying degree of inflammation and edema of the nail folds. This often results in a draining, foul-smelling lesion with hypertrophy of the involved nail fold; however, the most common accompanying symptom is pain. This condition most commonly occurs in the great toes and may require surgical treatment in moderate to severe cases. 7,10,13 Ingrown toenails account for approximately 20% of foot problems presenting to primary care. 13
Other conditions may also require avulsion of part or all the nail. These conditions may include but are not limited to onychomycosis, subungual hematoma, trauma, onychogryphosis, psoriasis, lichen planus, congenital nail dystrophies, and tumors. 1,2,5,12,14 Onychauxis, which can result from nail fungus, psoriasis, or other conditions, may cause onycholysis (separation of the nail plate from the nail bed). In the case of a moderate to severe symptomatic dystrophic nail plate, surgical intervention may be needed. 5,7,12 This LCD addresses the conditions for which nail avulsion may be considered reasonable and necessary.
Surgical techniques for the treatment of nail pathology include complete or partial nail avulsion. Nail avulsion requires adequate anesthesia for optimal results. 11 Generally, this procedure is performed under local anesthesia and involves the separation and removal of a border of the nail or removal of the entire nail from the nail bed to the eponychium. 8 When possible, partial nail plate avulsion is preferred to complete avulsion, because it minimizes trauma to the adjacent tissues. 3 Nail avulsions usually offer only temporary relief for ingrown toenails. The nail often grows back to its original thickness, and the offending margin again may become problematic, resulting in a need for another nail avulsion. Often, the preferred course of treatment may be a partial or complete nail avulsion performed with a matrixectomy, which is destruction or permanent removal of the matrix to prevent the nail from regrowing. 6,9,13,17 The matrixectomy can be performed either chemically or surgically. When nail avulsion is performed without matrixectomy, the nail will regrow from the matrix. 4 A fingernail takes approximately 4–6 months to regrow, and a toenail takes approximately 8–12 months to regrow. 1,13,14,16
Wedge excision of skin of the nail fold is a procedure designed to relieve pressure on the nail/soft tissue and requires an excision of a wedge of the soft granulation tissue and ingrown nail from the affected side (medial and/or lateral) of the toe or finger.
Services will be considered medically reasonable and necessary when all aspects of care are within the scope of practice of the provider’s professional licensure, when performed according to the supervision requirements per state scope of practice laws, and when all procedures are performed by appropriately trained providers in the appropriate setting.
Covered Indications
Surgical treatment of nails is covered for the following indications:
• Symptomatic onychocryptosis (ingrown fingernails or toenails) 6,7,10,13,15,17 ;
• Subungual abscess and/or hematoma after a failed puncture aspiration;
• Complicated injury of the toes or fingers involving the nail component that is severe enough to require removal of the nail to evaluate the stability of the nail bed or to release a subungual hematoma 14 ;
• Severe or recurrent fungal nail infection that has failed to respond to usual, less invasive treatment (e.g., pharmacological treatment, debridement);
• Onychogryphosis or onychauxis 1 ;
• Congenital or acquired nail dystrophies that jeopardize the integrity of the finger or toe 1,8 ;
• Diagnosis of suspected lichen planus or psoriasis of the fingernail or toenail 1 ;
• Subungual and periungual tumors 5
• For a medically reasonable and necessary repeat nail excision on the same finger or toe. The medical record documentation must be specific as to the indication, such as ingrown nail of the opposite border or new significant pathology on the same border recently treated;
• For a medically reasonable and necessary repeat nail avulsion of the same toenail or fingernail performed more often than every 32 weeks (8 months) for toenails or every 16 weeks (4 months) for fingernails. The medical record documentation must be specific as to the indication, such as ingrown nail of the opposite border or new significant pathology on the same border recently treated. 1,13,14,16
Limitations
The following indications are non-covered and are considered not medically reasonable and necessary:
• Trimming, cutting, clipping or debridement of nails;
• Removing small chips or wedges of the nail or skin that does not require local anesthesia does not constitute surgical treatment of a nail 1,13 ;
• Simple treatment of ingrown toenails (e.g., trimming, cutting, clipping of the distal unattached nail margins) does not constitute surgical treatment of nails;
• Surgical treatment of asymptomatic conditions 1
Summary of evidence (opening)
Abdullah and Abbas published a clinical literature review presenting common nail alterations and disorders that occur in the elderly population and their management options. 1 The elderly are at an increased risk of nail alterations, including normal age-related changes and nail disorders that are more common in this specific population. Secondary factors that may contribute to pathologic nail changes include impaired circulation at the distal extremities, faulty biomechanics, infections, neoplasms, and skin or systemic diseases with nail manifestations. These factors can affect the nail plate or involve other components of the nail unit (e.g., matrix, nail bed, hyponychium, or nail folds). These nail changes can impair the daily activities of this older population whose activities might already be restricted. Common nail disorders in this population include onychauxis, onychocryptosis, infections (e.g., onychomycosis), subungual hematoma, and malignancies of the nail apparatus.
Tos et al. published a review article, which addressed the surgical treatment of acute fingernail injuries. 14 This review focused on several nailbed and fingertip injuries. One such injury reviewed was that of a subungual hematoma. The authors suggested that when >50% involvement of the nail plate is associated with a fracture of the distal phalanx, examination of the nail bed is recommended. The fingernail should be detached, the hematoma drained, and the nail lesions should be identified and eventually treated.
Multiple publications (Eekhof et al; Geizhals et al; Kline; Mayeaux et al; Vlahovic) describe the ingrown nail (onychocryptosis) and potential approaches to treatment. 6,7,10,13,15 Eekhof et al. updated the Cochrane review 'Surgical treatments for ingrowing toenails’ in order to evaluate the effects of non-surgical and surgical interventions in a medical setting for ingrowing toenails. 6 Two authors independently selected studies that included randomized control trials (RCT) of non-surgical and surgical interventions for ingrowing toenails, assessed methodological quality, and extracted data from the selected studies. The group then analyzed outcomes as risk ratios (RR) with 95% confidence intervals (CI). This update included 24 RCT studies, with a total of 2,826 participants, 7 of the studies were included in a previous review. Five studies were on non-surgical interventions, and 19 were on surgical interventions. The goal of surgical treatment is to remove the interaction between the nail plate and the nail fold to eliminate the local trauma and inflammatory reaction. These approaches are superior to non-surgical ones for preventing recurrence. In the Cochrane review, 1 study demonstrated no significant difference in recurrence with nail-edge excision and total avulsion of the nail. Less recurrence was noted after 12 months with wedge resection (RR = 0.19; 95% CI, 0.05 to 0.80) and radical excision of the nail fold (RR = 0.17; 95% CI, 0.04 to 0.72) than with the rotational flap technique of the nail fold. Prevention of recurrence between wedge resection and radical excision of the nail fold showed no significant difference after 12 months.
The most common, and preferred, surgical approach is partial avulsion of the lateral edge of the nail plate (Collins et al.) 3 often followed by lateral horn matrixectomy by phenolization or surgical excision of the lateral horn of the nail matrix. Both approaches appear equally effective. The recurrence rate, for ingrown toenail, with a simple partial nail avulsion is approximately 70%. 15 A Cochrane systematic review 6 found that partial nail avulsion combined with phenolization is more effective at preventing symptomatic recurrence than surgical excision without phenolization (1 in 25 patients vs. 8 in 21 patients respectively). Electrosurgical or laser ablation of the matrix are also successful alternatives.
The contractor cites 17 sources in the bibliography; the full summary and analysis of evidence are in the CMS record.
Dates, lineage and related policies
- Original determination effective
- 2023-03-05
- Current revision effective
- 2025-03-13
- Last reviewed by the contractor
- 2024-08-26
- MCD version
- 12
The contractor lists one National Coverage Determination as related: NCD 70.2.1 Services Provided for the Diagnosis and Treatment of Diabetic Sensory Neuropathy with Loss of Protective Sensation (aka Diabetic Peripheral Neuropathy). Where an NCD speaks, it controls; the LCD can only address what the NCD leaves open.
Other related documents: A59579 (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.
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 L39258 cover?
Nail surgery is often performed to remove benign and malignant nail tumors, relieve pain caused by ingrown and traumatized nails, manage disease processes, and diagnose challenging lesions and dystrophies. 8 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 L39258 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 L39258?
The companion billing and coding article A59028 lists 392 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 L39258?
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.