CMS modified NCD 235 governing scleral shell coverage under Medicare, effective January 9, 2026. Here's what billing teams need to know.
The Centers for Medicare & Medicaid Services updated NCD 235 in its Medicare coverage policy for scleral shells (also called scleral shields). This National Coverage Determination defines when Medicare covers these prosthetic devices — and the two covered indications are narrow. The policy does not list specific HCPCS or CPT codes, which creates a documentation burden your billing team needs to address now.
| Field | Detail |
|---|---|
| Payer | CMS (Centers for Medicare & Medicaid Services) |
| Policy | Scleral Shell — NCD 235 |
| Policy Code | NCD 235 |
| Change Type | Modified |
| Effective Date | 2026-01-09 |
| Impact Level | Medium |
| Specialties Affected | Ophthalmology, Optometry, Ocularistry, Prosthetics |
| Key Action | Review your documentation templates for scleral shell claims to confirm they align with the two covered medical necessity indications before billing Medicare |
CMS Scleral Shell Coverage Criteria and Medical Necessity Requirements 2026
NCD 235 is the National Coverage Determination governing Medicare coverage of scleral shells (scleral shields) as prosthetic devices. The coverage policy is grounded in §1861(s)(8) of the Social Security Act, which covers prosthetic devices that replace the function of a body part. Two covered indications exist. Neither is broadly applied, and the documentation requirements for each are different.
First indication: the sightless, shrunken eye. When inflammatory disease renders an eye both sightless and physically shrunken, a scleral shell may eliminate the need for surgical enucleation and prosthetic implant. In this role, the device acts essentially as an artificial eye. It also supports the surrounding orbital tissue. Medicare covers the scleral shell in this situation as a prosthetic device under §1861(s)(8).
The medical necessity bar here is specific. The eye must be both sightless and shrunken. Sightless alone is not enough. Shrunken alone is not enough. Your documentation needs to establish both conditions, and it should connect them to inflammatory disease as the cause.
Second indication: severe dry eye disease. CMS also covers scleral shells in rare cases where the lacrimal gland has failed and artificial tears alone are inadequate. The scleral shell acts as a barrier against atmospheric drying, dramatically extending the effective half-life of artificial tears. In this role, it substitutes — partially — for a diseased lacrimal gland.
The word "rare" is doing real work in this policy. CMS is not covering scleral shells for common dry eye. The coverage policy applies when lacrimal gland failure drives the need, not general ocular surface disease. Your clinical documentation must make that distinction explicit.
The benefit category for both indications is Prosthetic Devices. That framing matters for billing. This is not billed as a contact lens or an optical device. It is billed as a prosthesis that replaces or substitutes for a body part's function.
Prior authorization requirements are not specified within NCD 235 itself. However, your Medicare Administrative Contractor may have a local coverage determination (LCD) that adds prior authorization or additional documentation requirements on top of this NCD. Check with your MAC before January 9, 2026 to confirm no additional requirements apply in your region.
CMS Scleral Shell Exclusions and Non-Covered Indications
NCD 235 does not cover scleral shells used as standard contact lenses for vision correction. This is a hard exclusion by implication — the coverage policy is built entirely around prosthetic function, not refractive correction.
The dry eye indication is explicitly "rare." That is CMS language in the policy, not editorial interpretation. A scleral shell prescribed for general dry eye syndrome, moderate dry eye, or ocular surface disease without documented lacrimal gland failure will not meet medical necessity under this NCD. Expect a claim denial if your documentation does not establish lacrimal gland failure as the underlying condition.
Similarly, cosmetic use — fitting a scleral shell over a disfigured but not sightless or shrunken eye purely for appearance — does not meet coverage criteria. The policy is focused on functional replacement, not cosmetic restoration.
Coverage Indications at a Glance
| Indication | Status | Relevant Codes | Notes |
|---|---|---|---|
| Sightless and shrunken eye from inflammatory disease — scleral shell acting as artificial eye | Covered | No specific codes listed in NCD 235 | Document both sightless and shrunken conditions; establish inflammatory disease as cause |
| Severe dry eye from lacrimal gland failure — scleral shell as prosthetic barrier | Covered (rare cases only) | No specific codes listed in NCD 235 | Must document lacrimal gland failure, not general dry eye; CMS language specifies this is rare |
| Vision correction or refractive use | Not Covered | N/A | Not a prosthetic device in this context; fails benefit category requirement |
| Cosmetic use over disfigured but functional/non-shrunken eye | Not Covered | N/A | No prosthetic function being replaced |
| General or moderate dry eye without lacrimal gland failure | Not Covered | N/A | Does not meet medical necessity threshold under this NCD |
CMS Scleral Shell Billing Guidelines and Action Items 2026
The absence of specific HCPCS codes in NCD 235 is the first problem your billing team needs to solve. The policy defines the covered indications clearly, but it does not hand you a code. That gap creates real claim denial risk if you're not billing the right way.
| # | Action Item |
|---|---|
| 1 | Confirm the correct HCPCS code with your MAC before January 9, 2026. NCD 235 does not list specific HCPCS or CPT codes. Your Medicare Administrative Contractor (MAC) handles claims processing for your region, and MACs often publish specific billing instructions for items with no code listed in the NCD. Call or check your MAC's website now. |
| 2 | Audit your documentation templates for scleral shell claims before the effective date. Your templates need to capture the specific covered indications: (a) sightless and shrunken eye from inflammatory disease, or (b) lacrimal gland failure with documented failure of artificial tears alone. Generic "medical necessity" language will not hold up. The template should prompt the clinician to document exactly which indication applies. |
| 3 | Train your coders and billers on the prosthetic device benefit category. Scleral shell billing under Medicare flows through the Prosthetic Devices benefit category, not through ophthalmic supplies or contact lenses. If your charge capture routes these claims incorrectly, you will get denials regardless of clinical documentation. |
| 4 | Check for a local coverage determination (LCD) from your MAC. NCD 235 sets the floor. Your MAC may have an LCD that adds conditions, requires prior authorization, or expands coverage for specific ICD-10 codes. Review your MAC's LCD database by January 9, 2026. This is especially important for the dry eye indication, which invites more clinical variability. |
| 5 | Document the "rare" qualifier for dry eye claims. If you're billing scleral shell for lacrimal gland failure, your claim needs to withstand scrutiny. Document that artificial tears were tried and failed. Document the lacrimal gland failure diagnosis. Document why the scleral shell is the appropriate intervention. Claims without this trail are easy targets for medical necessity audits and recoupment. |
| 6 | Separate scleral shell reimbursement from contact lens claims. Medicare does not cover contact lenses for vision correction. If a scleral shell is billed without clear prosthetic documentation, it will look like a contact lens claim and be denied. Make sure your billing guidelines explicitly distinguish between these two device categories for your front-end staff. |
| 7 | If you're billing for ocularists or prosthetists, confirm their enrollment and taxonomy codes. A scleral shell serving as an artificial eye may be provided by an ocularist, an ophthalmologist, or a prosthetist depending on the clinical context. The provider's Medicare enrollment and specialty taxonomy need to match the prosthetic device benefit category. A mismatch here generates denials that are annoying and avoidable. |
If you're not sure how this NCD applies to your specific patient mix or provider types, talk to your compliance officer before January 9, 2026. The two covered indications are narrow enough that an edge-case claim — say, a scleral shell for a patient who is sightless but whose eye isn't shrunken — could fall outside NCD 235 entirely.
| 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 Scleral Shells Under NCD 235
NCD 235 does not list specific CPT or HCPCS codes. This is a known gap in this coverage policy.
Your billing team needs to identify the correct HCPCS code through your MAC's published billing instructions. Some MACs publish companion billing guidelines that map specific codes to NDCs or device categories not listed in the NCD itself.
The policy cross-references the Medicare Benefit Policy Manual, Chapter 1 §§40 and 120.1 and Chapter 15 §§120 and 130. Review those sections for additional coding context. Chapter 15 §120 and §130 cover prosthetic devices and artificial eyes respectively, and they may contain coding guidance relevant to your claims.
No Specific Codes Listed in NCD 235
| Code | Type | Description |
|---|---|---|
| Not specified | HCPCS/CPT | CMS does not identify specific codes in NCD 235 — confirm with your MAC |
Until CMS or your MAC publishes explicit code assignments for scleral shell billing under this NCD, your scleral shell billing will require manual verification. Do not assume the code you used last year is the right one without confirming it against current MAC guidance.
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