Aetna modified CPB 0673 covering knee arthroscopy and osteoarthritis of the knee treatments, effective February 21, 2026. Here's what billing teams need to know before submitting claims.
Aetna, a CVS Health company, updated its knee arthroscopy coverage policy under CPB 0673 in the Aetna system. This policy governs a wide range of procedures billed under CPT codes including 29880, 29881, 29882, 29883, and 29874, along with dozens of HCPCS codes for injections and emerging treatments. The update tightens medical necessity criteria, draws harder lines around non-covered procedures, and adds explicit documentation rules for surgical disagreements with imaging reports. If your practice bills knee arthroscopy or intra-articular injections for Aetna members, read this before your next prior authorization request.
Quick-Reference: Aetna CPB 0673 Knee Arthroscopy Policy Change 2026
| Field | Detail |
|---|---|
| Payer | Aetna, a CVS Health company |
| Policy | Knee Arthroscopy / Osteoarthritis of the Knee |
| Policy Code | CPB 0673 |
| Change Type | Modified |
| Effective Date | February 21, 2026 |
| Impact Level | High |
| Specialties Affected | Orthopedic Surgery, Sports Medicine, Pain Management, Interventional Radiology, Physical Medicine & Rehabilitation |
| Key Action | Audit your prior authorization workflows and documentation for OA grading, PT failure, and imaging confirmation before submitting any knee arthroscopy or injection claims |
Aetna Knee Arthroscopy Coverage Criteria and Medical Necessity Requirements 2026
The real issue with CPB 0673 is that Aetna's medical necessity bar is genuinely high — and poorly documented charts will fail it every time.
Aetna covers arthroscopic knee surgery (CPT 29880, 29881, 29882, 29883) only when all of the following are true. The member must have significant knee pain plus mechanical symptoms. Osteoarthritis must be no more than mild — Kellgren-Lawrence grade 0, 1, or 2, or modified Outerbridge Grade 0, 1, or 2. And radiology must confirm the pathology. That means X-ray for loose bodies, MRI for meniscal tears and/or loose bodies.
Conservative therapy failure is also required. Specifically, the member must have completed at least six weeks of formal, in-person physical therapy within the past year. Home PT and virtual PT do not count. PT completion must be documented either by actual PT notes or by the member's claims history.
There is one exception to the conservative therapy requirement. If the member's knee is "locked" due to a displaced bucket handle tear of the meniscus, Aetna will waive the PT requirement. Document this clearly in the medical record.
For traumatic meniscal tears specifically, CPT 29882 and 29883 require MRI confirmation of the pathology, significant symptoms, and the same mild OA grading ceiling. Arthroscopic meniscal repair for medial or lateral meniscal root tears follows the same OA grading rule. Meniscal repair also requires documentation that the vascular supply to the torn portion is adequate and that the meniscal tissue is not degenerated on imaging.
Intra-articular glucocorticoid injections (CPT 20610, 20611; HCPCS J0702, J1100, J1700, J1720, J2650, J3300, J3301, J3302, J3303) are covered for knee OA under this coverage policy. This is a clean, broadly available coverage path — but billing teams should still confirm prior authorization requirements by plan type before scheduling.
One new documentation rule deserves your attention. If the operating surgeon disagrees with the official written report of a CT or MRI, that disagreement must be documented. The surgeon must discuss it with the interpreting provider, and a written addendum to the official report must note agreement or disagreement. Aetna will consider the official written report as the basis for coverage decisions. If your surgeons routinely override imaging reads at the time of surgery, your compliance officer needs to know about this requirement before the February 21, 2026 effective date.
Aetna Knee Arthroscopy Exclusions and Non-Covered Indications
Several procedures that billing teams frequently attempt to pass through prior authorization are explicitly not covered under CPB 0673.
CPT 29875 (minor synovectomy) is considered integral to all other arthroscopic knee procedures. You cannot bill it separately. CPT 29876 (major synovectomy) is only covered when a disease of the synovium — such as pigmented villonodular synovitis or synovial osteochondromatosis — is identified pre-operatively. Identifying it intraoperatively does not qualify. Note that the source code table places 29876 in the experimental/not-covered group, which conflicts with the narrative coverage condition. If you're billing 29876, talk to your compliance officer before submitting — this is an area where the policy text and code grouping don't align cleanly.
CPT 29877 (chondroplasty/debridement) cannot be approved on a pre-certification request. As an isolated procedure, it is not medically necessary for minor chondral lesions and is not approvable for significant arthritis. Aetna may consider it on a case-by-case basis post-operatively. This matters for your charge capture workflow — do not submit 29877 as a standalone pre-cert request.
CPT 29870 (diagnostic knee arthroscopy) is generally not considered medically necessary and not covered. The one exception: if radiologically proven pathology is not confirmed at surgery, you can bill 29870 post-operatively as medically necessary. Pre-certifying this code is a losing strategy.
CPT 29871 (arthroscopic lavage) is not covered for arthroscopic lavage. CPT 29875 is not covered for patellar debridement. These are explicit exclusions, not gray areas.
The following treatments are considered experimental, investigational, or unproven under this coverage policy:
| # | Excluded Procedure |
|---|---|
| 1 | Extracorporeal shock wave therapy (CPT 0101T) |
| 2 | Percutaneous cryoablation for peripheral or truncal nerves (CPT 0441T, 0442T) |
| 3 | Autologous cellular implants derived from adipose tissue (CPT 0565T, 0566T) |
| 4 | Subchondral bone injection with bone-substitute material (CPT 0707T) |
| 5 | Percutaneous autologous fat injections (CPT 15876, 15877, 15878, 15879) |
| 6 | High tibial osteotomy combined with autologous bone marrow transplantation (CPT 38232, 38241) |
| 7 | Genicular nerve destruction (CPT 64624) |
| 8 | Geniculate artery embolization (CPT 37242) |
| 9 | Genicular nerve stimulation (CPT 64555; HCPCS L8678–L8689) |
| 10 | Zilretta (extended-release triamcinolone acetonide, HCPCS J3304) |
| 11 | OnabotulinumtoxinA injection for knee OA (HCPCS J0585) |
| 12 | Cranial electrotherapy stimulation (HCPCS A4596, E0732) |
| 13 | Low-frequency ultrasonic diathermy (HCPCS K1004) |
| 14 | Implantable knee shock absorber / MISHA device (HCPCS C8003) |
| 15 | Nerve cryoablation probes including Iovera system (HCPCS C9808, C9809) |
If your practice offers any of these services and bills Aetna, expect denials. Appealing experimental designations is rarely successful without new peer-reviewed evidence. Talk to your compliance officer before billing these codes to Aetna members.
Coverage Indications at a Glance
| Indication | Status | Relevant Codes | Notes |
|---|---|---|---|
| Arthroscopic knee surgery with significant pain + mechanical symptoms, KL Grade 0–2, radiologic confirmation, PT failure | Covered | CPT 29880, 29881, 29882, 29883 | In-person PT only; 6 weeks minimum in past year |
| Arthroscopic partial meniscectomy or repair for traumatic meniscal tear, KL Grade 0–2, MRI confirmed | Covered | CPT 29881, 29882, 29883 | MRI confirmation required |
| Arthroscopic meniscal repair for medial/lateral root tears, KL Grade 0–2, significant symptoms | Covered | CPT 29882, 29883 | Vascular supply and tissue quality must be documented |
| Removal of loose body or foreign body | Covered | CPT 29874, HCPCS G0289 | X-ray or MRI confirmation required |
| Intra-articular glucocorticoid injections for knee OA | Covered | CPT 20610, 20611; HCPCS J0702, J1100, J1700, J1720, J2650, J3300, J3301, J3302, J3303 | Confirm prior auth by plan type |
| Minor synovectomy (CPT 29875) billed separately | Not Covered | CPT 29875 | Integral to all arthroscopic knee procedures |
| Major synovectomy | Policy narrative: covered with pre-op synovial disease dx; source code table: experimental/not covered — see compliance note | CPT 29876 | Confirm with compliance officer before billing |
| Chondroplasty/debridement as standalone pre-cert | Not Covered | CPT 29877 | May be reviewed post-operatively case-by-case |
| Diagnostic knee arthroscopy (pre-cert) | Not Covered | CPT 29870 | Covered post-op if pathology not confirmed at surgery |
| Arthroscopic lavage for infection | Not Covered | CPT 29871 | Explicit exclusion |
| Arthrotomy with meniscectomy | Not Covered | CPT 27332, 27333 | Not covered for listed indications |
| Extracorporeal shock wave therapy | Experimental | CPT 0101T | Not covered |
| Percutaneous cryoablation for nerves | Experimental | CPT 0441T, 0442T | Not covered |
| Autologous adipose cellular implants | Experimental | CPT 0565T, 0566T | Not covered |
| Subchondral bone injection | Experimental | CPT 0707T | Not covered |
| Percutaneous autologous fat injections | Experimental | CPT 15876–15879 | Not covered |
| Geniculate artery embolization | Experimental | CPT 37242 | Not covered |
| Genicular nerve destruction | Experimental | CPT 64624, 64640 | Not covered |
| Genicular nerve stimulation | Experimental | CPT 64555; HCPCS L8678–L8689 | Not covered |
| Zilretta (extended-release triamcinolone) | Experimental | HCPCS J3304 | See Medicare Part B criteria separately for Medicare members |
| OnabotulinumtoxinA (Botox) for knee OA | Experimental | HCPCS J0585 | Not covered |
| MISHA / implantable knee shock absorber | Experimental | HCPCS C8003 | Not covered |
| Iovera / nerve cryoablation probes | Experimental | HCPCS C9808, C9809 | Not covered |
| Cranial electrotherapy stimulation | Experimental | HCPCS A4596, E0732 | Not covered |
| TENS devices | Not Covered | HCPCS E0720, E0730 | No specific coverage under this CPB |
| Low-frequency ultrasonic diathermy (home use) | Experimental | HCPCS K1004 | Not covered |
Aetna Knee Arthroscopy Billing Guidelines and Action Items 2026
These are the steps your billing team and prior authorization staff should complete before February 21, 2026.
| # | Action Item |
|---|---|
| 1 | Audit your pre-cert templates for PT documentation. Aetna requires six weeks of in-person PT documented by actual PT notes or claims history. Update your intake forms to capture the PT provider name, dates of service, and visit count. Virtual or home PT does not satisfy this requirement — flag any cases where that's the only documented conservative therapy. |
| 2 | Update charge capture to block standalone CPT 29875 and 29877. Minor synovectomy (29875) is integral to all knee arthroscopic procedures and cannot be billed separately. Chondroplasty (29877) cannot be approved on pre-cert. Remove these from your standard arthroscopy bundles in your charge capture system. If 29877 is performed, document it for potential post-operative case-by-case review — do not include it in the initial claim without a clear plan. |
| 3 | Add OA grading to your surgical documentation checklist. Every arthroscopic knee case needs explicit Kellgren-Lawrence or modified Outerbridge grading documented in the operative note or pre-op workup. KL Grade 3 or 4 will trigger a denial. Moderate or severe OA is not covered under this policy. |
| 4 | Implement the imaging disagreement documentation protocol now. If your operating surgeons routinely document their own read of MRI or CT findings, and those readings differ from the radiologist's official report, Aetna now requires a written addendum to the official report confirming agreement or disagreement. Build this into your pre-op documentation workflow. A claim denial citing inadequate imaging confirmation is preventable. |
| 5 | Remove experimental codes from Aetna fee schedule templates. CPT 0565T, 0566T, 0707T, 37242, 64624, and HCPCS C8003, C9808, C9809, J3304 are not covered under CPB 0673. If your practice offers any of these services, confirm whether a patient's Aetna plan has any exceptions — most won't — before scheduling. Billing these codes will generate denials and increase your claim denial rate without a clear appeal path. |
| 6 | Check Medicare vs. commercial rules for Zilretta (J3304). Aetna's commercial CPB 0673 treats extended-release triamcinolone acetonide (Zilretta) as experimental. Medicare members have separate criteria under Aetna's Medicare Part B pathway. Don't apply commercial billing guidelines to Medicare Advantage members billing J3304. |
| 7 | Verify prior authorization requirements by specific plan type. This coverage policy sets the clinical criteria, but individual Aetna plan documents govern whether prior authorization is required for a given CPT code. Glucocorticoid injections billed under 20610 and 20611 may not require prior auth on some plans — but confirm before submitting. Arthroscopic procedures under 29880–29883 almost certainly require it. |
If your practice has a high volume of knee arthroscopy cases, loop in your compliance officer before the February 21, 2026 effective date to review your documentation protocols against these updated standards.
| Previous Version | Current Version |
|---|---|
| Coverage is considered experimental and investigational for all indications | Coverage is considered medically necessary when specific criteria are met |
| Prior authorization is not required | Prior authorization is required for initial treatment |
| Documentation must include clinical history | Documentation must include clinical history |
| Re-review every 24 months | Re-review every 12 months with updated clinical documentation |
CPT, HCPCS, and ICD-10 Codes for Knee Arthroscopy and Osteoarthritis Under CPB 0673
Covered CPT Codes (When Selection Criteria Are Met)
| Code | Type | Description |
|---|---|---|
| 29874 | CPT | Arthroscopy, knee, surgical; for removal of loose body or foreign body |
| 29880 | CPT | Arthroscopy, knee, surgical; with meniscectomy (medial AND lateral, including any meniscal shaving) |
| 29881 | CPT | Arthroscopy, knee, surgical; with meniscectomy (medial OR lateral, including any meniscal shaving) including debridement/shaving of articular cartilage |
| 29882 | CPT | Arthroscopy, knee, surgical; with meniscus repair |
| 29883 | CPT | Arthroscopy, knee, surgical; with meniscus repair |
Conditionally Covered / Integral Procedure CPT Codes
| Code | Type | Description | Notes |
|---|---|---|---|
| 29870 | CPT | Arthroscopy, knee, diagnostic, with or without synovial biopsy | Not covered pre-op; billable post-op if pathology not confirmed at surgery |
| 29875 | CPT | Arthroscopy, knee; synovectomy, limited | Integral to all other arthroscopic procedures; cannot be billed separately |
| 29877 | CPT | Arthroscopy, knee; debridement/shaving of articular cartilage (chondroplasty) | Cannot be pre-certified; case-by-case post-op review only |
Not Covered CPT Codes for Listed Indications
| Code | Type | Description |
|---|---|---|
| 27332 | CPT | Arthrotomy, with excision of semilunar cartilage (meniscectomy) knee |
| 27333 | CPT | Arthrotomy, with excision of semilunar cartilage (meniscectomy) knee |
| 29871 | CPT | Arthroscopy, knee; for infection, lavage and drainage |
| 29879 | CPT | Arthroscopy, knee, surgical; abrasion arthroplasty (includes chondroplasty where necessary) or multiple drilling or microfracture |
Experimental / Not Covered CPT Codes
| Code | Type | Description |
|---|---|---|
| 0101T | CPT | Extracorporeal shock wave involving musculoskeletal system, not otherwise specified, high energy |
| 0441T | CPT | Ablation, percutaneous, cryoablation, includes imaging guidance; lower extremity distal/peripheral nerve |
| 0442T | CPT | Ablation, percutaneous, cryoablation, includes imaging guidance; nerve plexus or other truncal nerve |
| 0565T | CPT | Autologous cellular implant derived from adipose tissue for the treatment of osteoarthritis of the knee |
| 0566T | CPT | Injection of cellular implant into knee joint including ultrasound guidance, unilateral |
| 0707T | CPT | Injection(s), bone-substitute material into subchondral bone defect |
| 15876 | CPT | Suction assisted lipectomy (for percutaneous autologous fat injections) |
| 15877 | CPT | Suction assisted lipectomy (for percutaneous autologous fat injections) |
| 15878 | CPT | Suction assisted lipectomy (for percutaneous autologous fat injections) |
| 15879 | CPT | Suction assisted lipectomy (for percutaneous autologous fat injections) |
| 27457 | CPT | Osteotomy, proximal tibia, including fibular excision or osteotomy |
| 29876 | CPT | Arthroscopy, knee, surgical; synovectomy, major, 2 or more compartments — source code table designates this as experimental/not covered; policy narrative describes a coverage condition; confirm with compliance officer before billing |
| 37242 | CPT | Vascular embolization or occlusion (geniculate artery embolization) |
| 38206 | CPT | Blood-derived hematopoietic progenitor cell harvesting; autologous |
| 38232 | CPT | Bone marrow harvesting for transplantation; autologous |
| 38241 | CPT | Hematopoietic progenitor cell (HPC); autologous transplantation |
| 64555 | CPT | Percutaneous implantation of neurostimulator electrode array; peripheral nerve (genicular nerve stimulation) |
| 64624 | CPT | Destruction by neurolytic agent, genicular nerve branches including imaging guidance |
| 64640 | CPT | Destruction by neurolytic agent; other peripheral nerve or branch |
| 96372 | CPT | Therapeutic, prophylactic, or diagnostic injection; subcutaneous or intramuscular |
Covered HCPCS Codes (When Selection Criteria Are Met)
| Code | Type | Description |
|---|---|---|
| G0289 | HCPCS | Arthroscopy, knee, surgical, for removal of loose body, foreign body, debridement/shaving of articular cartilage |
| J0702 | HCPCS | Injection, betamethasone acetate 3 mg and betamethasone sodium phosphate 3 mg |
| J1100 | HCPCS | Injection, dexamethasone sodium phosphate, 1 mg |
| J1700 | HCPCS | Injection, hydrocortisone acetate, up to 25 mg |
| J1720 | HCPCS | Injection, hydrocortisone sodium succinate, up to 100 mg |
| J2650 | HCPCS | Injection, prednisolone acetate, up to 1 ml |
| J3300 | HCPCS | Injection, triamcinolone acetonide, preservative free, 1 mg |
| J3301 | HCPCS | Injection, triamcinolone acetonide, not otherwise specified, 10 mg |
| J3302 | HCPCS | Injection, triamcinolone diacetate, per 5 mg |
| J3303 | HCPCS | Injection, triamcinolone hexacetonide, per 5 mg |
Experimental / Not Covered HCPCS Codes
| Code | Type | Description |
|---|---|---|
| A4596 | HCPCS | Cranial electrotherapy stimulation (CES) system supplies and accessories, per month |
| C8003 | HCPCS | Implantation of medial knee extraarticular implantable shock absorber spanning the knee joint (MISHA) |
| C9808 | HCPCS | Nerve cryoablation probe (e.g., Cryoice, Cryosphere) |
| C9809 | HCPCS | Cryoablation needle (e.g., Iovera system), including needle/tip and all disposable system components |
| E0720 | HCPCS | Transcutaneous electrical nerve stimulation (TENS) device, two-lead |
| E0730 | HCPCS | Transcutaneous electrical nerve stimulation (TENS) device, four or more leads |
| E0732 | HCPCS | Cranial electrotherapy stimulation (CES) system, any type |
| J0585 | HCPCS | Injection, onabotulinumtoxinA, 1 unit |
| J3304 | HCPCS | Injection, triamcinolone acetonide, preservative-free, extended-release, microsphere formulation (Zilretta), 1 mg |
| K1004 | HCPCS | Low frequency ultrasonic diathermy treatment device for home use |
| L8678 | HCPCS | Electrical stimulator supplies (external) for use with implantable neurostimulator, per month (genicular nerve stimulation) |
| L8680 | HCPCS | Implantable neurostimulator electrode, each (genicular nerve stimulation) |
| L8681 | HCPCS | Patient programmer (external) for use with implantable programmable neurostimulator pulse generator |
| L8682 | HCPCS | Implantable neurostimulator radiofrequency receiver (genicular nerve stimulation) |
| L8683 | HCPCS | Radiofrequency transmitter (external) for use with implantable neurostimulator radiofrequency receiver |
| L8685 | HCPCS | Implantable neurostimulator pulse generator, single array, rechargeable (genicular nerve stimulation) |
| L8686 | HCPCS | Implantable neurostimulator pulse generator, single array, non-rechargeable (genicular nerve stimulation) |
| L8687 | HCPCS | Implantable neurostimulator pulse generator, dual array, rechargeable (genicular nerve stimulation) |
| L8688 | HCPCS | Implantable neurostimulator pulse generator, dual array, non-rechargeable (genicular nerve stimulation) |
| L8689 | HCPCS | External recharging system for battery (internal) for use with implantable neurostimulator |
| L8695 | HCPCS | External recharging system for battery (external) for use with implantable neurostimulator |
Key ICD-10-CM Diagnosis Codes
| Code | Description |
|---|---|
| G89.18 | Other acute postprocedural pain |
| M15.0 | Polyosteoarthritis |
| M15.1 | Polyosteoarthritis |
| M15.2 | Polyosteoarthritis |
| M15.3 | Polyosteoarthritis |
| M15.4 | Polyosteoarthritis |
| M15.5 | Polyosteoarthritis |
| M15.6 | Polyosteoarthritis |
| M15.7 | Polyosteoarthritis |
| M15.8 | Polyosteoarthritis |
| M15.9 | Polyosteoarthritis |
| M16.0 | Osteoarthritis of hip |
CPB 0673 references 234 total ICD-10-CM codes. The full code list is available in the complete policy document at app.payerpolicy.org/p/aetna/0673.
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