CMS Scleral Shell Coverage Policy Update (NCD 235): What Billing Teams Need to Know for 2026
The Centers for Medicare & Medicaid Services has modified National Coverage Determination NCD 235, which governs Medicare coverage of scleral shells—hard scleral contact lenses used primarily as prosthetic devices. This policy update, effective March 12, 2026, clarifies the specific clinical scenarios under which Medicare will pay for scleral shells as prosthetic devices under §1861(s)(8) of the Social Security Act. Billing teams serving ophthalmology, optometry, and oculoplastics practices should review documentation protocols now to ensure claims align with CMS's medical necessity criteria.
| Field | Detail |
|---|---|
| Payer | CMS (Centers for Medicare & Medicaid Services) |
| Policy | Scleral Shell |
| Policy Code | NCD 235 |
| Change Type | Modified |
| Effective Date | 2026-03-12 |
| Impact Level | Medium |
| Specialties Affected | Ophthalmology, Optometry, Oculoplastic Surgery, Ocular Prosthetics |
| Key Action | Audit documentation to confirm scleral shell claims meet CMS's two distinct covered indications—sightless/shrunken eye or severe dry eye—before billing under the prosthetic device benefit category. |
What Is a Scleral Shell Under CMS NCD 235?
CMS defines a scleral shell (also called a scleral shield) as a catchall term for hard scleral contact lenses. The key anatomical distinction matters for billing: a scleral shell fits over the entire exposed surface of the eye, unlike a standard corneal contact lens, which covers only the central non-white area encompassing the pupil and iris.
This distinction isn't just clinical—it's the foundation of how CMS categorizes these devices for coverage purposes. Because a scleral shell can substitute for the function of a missing or non-functioning anatomical structure, CMS treats it as a prosthetic device under the Medicare benefit policy manual rather than as a routine vision item, which would generally not be covered under Medicare Part B.
The policy is housed under the Prosthetic Devices benefit category. Billing teams should not confuse scleral shells with standard contact lenses billed under vision benefits—these are separate coverage pathways with different documentation requirements.
CMS Coverage Criteria for Scleral Shells: Two Distinct Indications
NCD 235 identifies two specific clinical scenarios where Medicare payment may be made for a scleral shell. Both hinge on the device functioning as a prosthetic substitute for a diseased or absent anatomical structure—not as corrective eyewear.
Indication 1: Sightless, Shrunken Eye Due to Inflammatory Disease
When an eye has been rendered sightless and shrunken by inflammatory disease, a scleral shell may serve essentially as an artificial eye. In this scenario, CMS recognizes that the device can:
| # | Covered Indication |
|---|---|
| 1 | Eliminate the need for surgical enucleation (surgical removal of the eye) |
| 2 | Eliminate the need for a prosthetic implant |
| 3 | Support the surrounding orbital tissue |
This is the stronger of the two coverage pathways. The clinical record should document the sightless condition, the inflammatory etiology, and the medical rationale for choosing a scleral shell over surgical intervention. Claims in this scenario are covered under §1861(s)(8) of the Act as a prosthetic device.
Indication 2: Severe Dry Eye (Lacrimal Gland Failure)
The second covered indication is more narrowly defined—and significantly harder to support with documentation. CMS will cover a scleral shell as a prosthetic device in the rare case when it is used to treat dry eye of diverse etiology where lacrimal gland function has failed.
The mechanism CMS describes is specific: artificial tears evaporate quickly under normal conditions, requiring frequent instillation. When the lacrimal gland fails, a scleral contact lens can act as a protective barrier against atmospheric drying, greatly prolonging the half-life of artificial tears and reducing the need for frequent drops. In this context, the lens substitutes, in part, for the functioning of the diseased lacrimal gland.
CMS uses the word "rare" deliberately here. Billing a scleral shell under the dry eye indication for routine aqueous-deficient dry eye without documented lacrimal gland failure is unlikely to survive medical necessity review. Documentation should include:
| # | Covered Indication |
|---|---|
| 1 | Confirmed lacrimal gland dysfunction or failure |
| 2 | Prior treatment attempts with artificial tears alone |
| 3 | Clinical justification for why scleral shell therapy is medically necessary in this specific patient |
Coverage vs. Non-Coverage: What NCD 235 Does Not Address
NCD 235 does not address scleral lenses billed purely for refractive correction (e.g., keratoconus management with gas-permeable scleral lenses billed as corrective lenses). Those scenarios fall under different coverage rules—and typically don't qualify for Medicare Part B coverage unless a separate prosthetic device rationale is documented.
The policy also does not designate any use of scleral shells as experimental or investigational. The two indications described are affirmatively covered under the prosthetic device benefit. Uses outside those two indications simply lack a CMS coverage pathway under this NCD.
| 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 |
Affected Codes
The policy does not list specific CPT or HCPCS codes. Billing teams should reference their Medicare Administrative Contractor (MAC) for applicable HCPCS codes—commonly A-codes used for prosthetic devices and ocular prostheses—and verify local coverage policies that may supplement this NCD. Consult Chapter 15, §§120 and 130 of the Medicare Benefit Policy Manual for additional coding guidance.
Related ICD-10 Diagnosis Codes
The policy does not list specific ICD-10-CM codes. The following diagnosis categories are clinically relevant based on the covered indications described in NCD 235—confirm with your MAC before using:
| Coverage Indication | Relevant Diagnosis Area |
|---|---|
| Sightless/shrunken eye from inflammatory disease | Ophthalmic inflammatory conditions resulting in phthisis bulbi |
| Severe dry eye / lacrimal gland failure | Keratoconjunctivitis sicca, lacrimal gland disorders |
Work with your coding team to assign the most specific ICD-10-CM codes available based on the treating physician's documented diagnosis.
What Your Billing Team Should Do
| # | Action Item |
|---|---|
| 1 | Audit open and pending scleral shell claims (before March 12, 2026). Pull any claims billed under a prosthetic device pathway for scleral shells and confirm each maps clearly to one of the two covered indications—sightless/shrunken eye or documented lacrimal gland failure causing severe dry eye. |
| 2 | Update clinical documentation templates immediately. Work with your ophthalmology or optometry providers to add fields that capture the specific NCD 235 criteria: inflammatory disease etiology, sightless/shrunken eye confirmation, or documented lacrimal gland failure with prior treatment history for dry eye cases. Vague "dry eye" diagnoses will not support the prosthetic device rationale. |
| 3 | Contact your MAC for applicable HCPCS codes. Since NCD 235 does not list specific codes, reach out to your Medicare Administrative Contractor to confirm which HCPCS codes they accept for scleral shells billed under the prosthetic device benefit. Document this guidance in writing. |
| 4 | Train your front-end billing staff on the "rare case" standard for dry eye. The word "rare" in the policy is meaningful—routine dry eye claims billed as prosthetic devices will draw scrutiny. Establish an internal threshold requiring physician attestation that lacrimal gland function has failed before submitting claims under this indication. |
| 5 | Cross-reference the Medicare Benefit Policy Manual. CMS directs readers to Chapter 1, §§40 and 120.1 and Chapter 15, §§120 and 130 for additional guidance. Review these sections and confirm your billing protocols align with the broader prosthetic device coverage framework. |
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