Key facts for NCD 40.2
- Benefit category
- Durable Medical Equipment
- Effective date
- 06/19/2006
- Implemented 06/19/2006
- Transmittal
- Transmittal 48
- Versions published
- 2
- Manual chapter
- 40
- NCD Manual (Pub. 100-03)
TL;DR
NCD 40.2 sets Medicare's national policy for home blood glucose monitors under the benefit category "Durable Medical Equipment", effective 06/19/2006 and implemented 06/19/2006. Blood glucose monitors are meter devices that read color changes produced on specially treated reagent strips by glucose concentrations in the patient’s blood. The patient, using a disposable sterile lancet, draws a drop of blood, places it on a reagent… It has been revised 1 time since publication and binds every Medicare Administrative Contractor nationally.
Item or service described
CIM 60-11
There are several different types of blood glucose monitors that use reflectance meters to determine blood glucose levels. Medicare coverage of these devices varies, with respect to both the type of device and the medical condition of the patient for whom the device is prescribed.
Reflectance colorimeter devices used for measuring blood glucose levels in clinical settings are not covered as durable medical equipment for use in the home because their need for frequent professional re-calibration makes them unsuitable for home use. However, some types of blood glucose monitors which use a reflectance meter specifically designed for home use by diabetic patients may be covered as durable medical equipment, subject to the conditions and limitations described below.
Indications and limitations of coverage
Blood glucose monitors are meter devices that read color changes produced on specially treated reagent strips by glucose concentrations in the patient’s blood. The patient, using a disposable sterile lancet, draws a drop of blood, places it on a reagent strip and, following instructions which may vary with the device used, inserts it into the device to obtain a reading. Lancets, reagent strips, and other supplies necessary for the proper functioning of the device are also covered for patients for whom the device is indicated. Home blood glucose monitors enable certain patients to better control their blood glucose levels by frequently checking and appropriately contacting their attending physician for advice and treatment. Studies indicate that the patient’s ability to carefully follow proper procedures is critical to obtaining satisfactory results with these devices. In addition, the cost of the devices, with their supplies, limits economical use to patients who must make frequent checks of their blood glucose levels. Accordingly, coverage of home blood glucose monitors is limited to patients meeting the following conditions:
• The patient has been diagnosed as having diabetes;
• The patient’s physician states that the patient is capable of being trained to use the particular device prescribed in an appropriate manner. In some cases, the patient may not be able to perform this function, but a responsible individual can be trained to use the equipment and monitor the patient to assure that the intended effect is achieved. This is permissible if the record is properly documented by the patient’s physician; and
• The device is designed for home rather than clinical use.
There is also a blood glucose monitoring system designed especially for use by those with visual impairments. The monitors used in such systems are identical in terms of reliability and sensitivity to the standard blood glucose monitors described above. They differ by having such features as voice synthesizers, automatic timers, and specially designed arrangements of supplies and materials to enable the visually impaired to use the equipment without assistance.
These special blood glucose monitoring systems are covered under Medicare if the following conditions are met:
• The patient and device meet the three conditions listed above for coverage of standard home blood glucose monitors; and
• The patient's physician certifies that he or she has a visual impairment severe enough to require use of this special monitoring system.
The additional features and equipment of these special systems justify a higher reimbursement amount than allowed for standard blood glucose monitors. Separately identify claims for such devices and establish a separate reimbursement amount for them.
Text reproduced from the CMS Medicare Coverage Database record for NCD 40.2 version 2. View the original on cms.gov.
Revision history
03/2006 - Technical Corrections to the NCD Manual. Effective and Implementation dates 06/19/2006. ( TN 48 ) (CR 4278)
11/2002 - Implemented NCD under §1862(a)(1)(A) and §1861(n) of the Act. Effective and implementation dates NA. ( TN 163 ) (CR 2445)
04/1995 - Eliminated requirement that patient must be subject to poor diabetic control, and revised policy to allow any responsible individual, not just family member, to be trained to use device and monitor patient. Effective date 04/27/1995. (TN 75)
07/1988 - Changed coverage criteria from insulin-dependent diabetic to insulin treated, and provided that if patient unable to be trained to properly use device, coverage may still be granted if attending physician indicates that a responsible family member can be trained to use device and monitor patient. Effective date 07/15/1988. (TN 27)
How this NCD shows up on remittances
A service denied under a National Coverage Determination returns CARC 50 (not deemed medically necessary) with remark N386 (decision based on an NCD); a denial citing a local policy instead carries N115. Because NCDs bind nationally, the appeal path is documentation that the patient meets the indications above, not a contractor-policy argument.
How QuickIntell applies NCD 40.2
QuickAuth checks the ordered service and diagnosis against NCD and LCD criteria before the encounter, QuickCode validates the diagnosis pairing on the claim, and QuickRCM routes CARC 50 denials with the policy text and the covered-code list attached so the appeal starts with evidence.
Frequently asked questions — NCD 40.2
What does NCD 40.2 cover?
Blood glucose monitors are meter devices that read color changes produced on specially treated reagent strips by glucose concentrations in the patient’s blood. The patient, using a disposable sterile lancet, draws a drop of blood, places it on a reagent strip and, following instructions which may vary with the device used, inserts it into the device to obtain a reading. Lancets, reagent strips, and other supplies… The full indications and limitations are reproduced on this page from the CMS Medicare Coverage Database.
When did NCD 40.2 take effect?
The current version (2) is effective 06/19/2006, implemented 06/19/2006, published in transmittal 48. CMS lists 2 versions of this NCD.
Does a Local Coverage Determination override NCD 40.2?
No. A National Coverage Determination binds all Medicare Administrative Contractors; an LCD can only address services or circumstances the NCD leaves open. Claims denied under this NCD typically return CARC 50 with remark N386 (NCD) rather than N115 (LCD).
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 NCDs via the CMS Coverage APIVersion API snapshot 2026-09-27 · effective 2026-09-20 · file national-coverage-ncd.jsonSHA-256 a90fadfd264b9ef4…
Disclaimer
This page reproduces the CMS National Coverage Determination text and, for laboratory NCDs, the CMS ICD-10 edit lists, as an operational reference. Coverage decisions depend on the full policy, the claim and the contractor; nothing here is legal, clinical or billing advice. CPT codes are shown as numbers only; CPT descriptors are copyright AMA.