Noridian Healthcare Solutions, LLC, (Noridian), as the Supplemental Medical Review Contractor (SMRC) for the Centers for Medicare and Medicaid (CMS), has conducted post-payment review of claims for Medicare Part B billed on dates of service from January 1, 2022 through December 31, 2023. Below are the review results:

Background

Nail avulsion is the removal of all or part of the nail from the nail bed of the finger or toe, due to traumatic injury or systemic disease. This procedure is commonly performed for both diagnostic and/or therapeutic indications. Removal of the nail plate allows for the examination of the matrix for the presence of injury or other pathology. Removal of the nail plate allows for the examination of the matrix for the presence of injury or other pathology.

Podiatry services are covered by Medicare Part B for treatment of injuries, disease, or other medical conditions affecting the foot, ankle, or lower leg when medically necessary. Routine footcare services are generally not covered for services such as cutting or removal of corns and calluses, or trimming, cutting, clipping, or debridement of nails to reduce nail thickness. Routine footcare services are considered reasonable and necessary and covered by Medicare Part B if they are performed (1) as a necessary and integral part of an otherwise covered service; (2) for the treatment of warts on the foot; (3) in the presence of a systemic condition; or (4) treatment of a toenail that is infected.

For Stage II and Stage III ingrown nails, surgical intervention is considered. Ingrown nails are staged by signs and symptoms of infection. Stage II ingrown nails have increased pain, discharge, and inflammation. Stage III ingrown nails contain abnormal granulation around the nail area, and may present with pain, edema, and purulent drainage. Due to the abnormal fit of the nail groove, Stage II and Stage III ingrown nails require removal of more than a fourth of the nail laterally, as these simple nail avulsions are considered unnecessary and are associated with high recurrence rates. Nail avulsions are generally performed under local anesthesia.

Evaluation and Management (E/M) services billed by the same provider that performed the nail avulsion service on the same day are not covered, unless the E/M service is a significant, separately identifiable service, and appended with modifier 25 indicating a significant, separately identifiable E/M service by the same physician or other qualified health care profession on the same day of the procedure.

Reason for Review

The SMRC was tasked to perform data analysis and conducted medical record reviews on claims billed with CPT codes 11730 and 11732 with or without modifier 59, in addition to select E/M codes billed with modifier 25 for dates of service January 1, 2022, through December 31, 2023.

The SMRC conducted medical record reviews in accordance with applicable waivers/flexibilities/statutory, regulatory, and sub-regulatory guidance.

Common Reasons for Denial

• Non-Response to the Additional Documentation Request (ADR)
  • Refer to 42 CFR §§405.929 and 405.930, Social Security Act (SSA) 1815(a), Social Security Act (SSA) 1833(e) and Social Security Act (SSA) 1862(a)(1)(A). No documentation was received in response to the ADR letter.
• Separate Identifiable Service Not Performed
  • Refer to IOM Medicare Claims Processing Manual Chapter 12, Section 30.6; Section 1833 (e), Title XVIII, of the Social Security Act. The documentation did not demonstrate a separately identifiable service was provided. This denial reason was applied when an E/M service billed with modifier 25 was submitted alongside a nail avulsion, however the records failed to support a significant, distinct service beyond the procedure itself.
• Documentation Did Not Support Modifiers Billed
  • Refer to Medicare Program Integrity Manual Chapter 3, IOM Pub 100-04, Medicare Claims Processing Manual Chapter 1. The documentation submitted did not support the modifiers billed. For instance, the claim reflected either the use of an incorrect digit modifier or the inappropriate application of modifier 59. Modifier 59 is intended to identify distinct procedural services.

References

Social Security Act (SSA), Title XI

• §1135 Authority to Waive Requirements During National Emergencies

SSA, Title XVIII

• §1815(a) Payment to Providers of Services
• §1833(e) Payment of Benefits
• §1862(a)(1)(A), (a)(7), (a)(13)(C) Exclusions from Coverage and Medicare as Secondary Payer
• §1879(a)(1) Limitation on Liability of Beneficiary where Medicare Claims are Disallowed

42 Code of Federal Regulations (CFR)

• §411.15(l) Particular services excluded from coverage-Foot care
• §424.5 Basic Conditions
• §482.24 Condition of participation: Medical record services

Federal Register

• Final Rule Volume 85, No. 66, Medicare and Medicaid Programs; Policy and Regulatory Revisions in Response to the COVID–19 Public Health Emergency. Effective March 1, 2020. Retrieved from 2020-06990.pdf (govinfo.gov)
• Interim Final Rule with Comments (IFC) 85 FR 19230. Revisions in Response to the COVID-19 Public Health Emergency. CMS-1744-IFC. Effective March 1, 2020. Retrieved from CMS-1744-IFC

IOM, Medicare Benefit Policy Manual (MBPM), Pub. 100-02

• Ch. 15, §100 Surgical Dressings, Splints, Casts, and Other Devices Used for Reductions of Fractures and Dislocations
• Ch. 16, General Exclusion from Coverage

IOM, Medicare Claims Processing Manual (MCPM), Pub. 100-04

• Ch. 1, General Billing Requirements
• Ch. 12, §30.6 Evaluation and Management Service Codes – General (Codes 99201 – 99499)
• Ch. 20, §100 General Documentation Requirements
• Ch. 30, §50 Advance Beneficiary Notice of Non-coverage (ABN)

IOM, Medicare Program Integrity Manual (MPIM), Pub. 100-08

• Ch. 3, Verifying Potential Errors and Taking Corrective Actions
• Ch. 13, §13.5.4 Reasonable and Necessary Provisions in LCDs

CMS Coding Policies

• American Academy of Professional Coders (AAPC). 99202-99215: Office/Outpatient E/M Coding in 2021. January 2021. Retrieved from Evaluation and Management (E/M) Code Changes 2021 – AAPC
• National Correct Coding Initiative (NCCI) Edits. NCCI Policy Manual for Medicare Services. §§2021, 2022, and 2023
• NCCI Policy Manual for Medicare Services, Effective January 1, 2020. Chapter 1, Section D. Evaluation and Management (E/M) Services
• NCCI Policy Manual for Medicare Services, Effective January 1, 2020. Chapter 1, Section E. Modifiers and Modifier Indicators
• NCCI Policy Manual for Medicare Services, Effective January 1, 2020. Chapter 11, Section U. Evaluation & Management Services

Local Coverage Determination (LCDs)

• L33833 Surgical Treatment of Nails. Effective October 1, 2015
• L34887 Surgical Treatment of Nails. Effective October 1, 2015
• L39258 Surgical Treatment of Nails. Effective March 5, 2023

Other

• American Medical Association (AMA). Evaluation and Management (E/M) Services Guidelines. January 1, 2023. Retrieved from 2023 CPT E/M descriptors and guidelines (ama-assn.org)
• The Centers of Medicare and Medicaid Services (CMS). Medical Learning Network (MLN) 006764. Evaluation and Management Services. August 2023. Retrieved from MLN006764 | CMS
• CMS. MLN SE1113. Foot Care Coverage Guidelines. Retrieved from se1113 (hhs.gov)
• CMS. MLN 1783722. Proper Use of Modifiers 59, XE, XP, XS & XU. Retrieved from 1783722 (hhs.gov)

Last Updated Jan 22, 2026