Local Coverage Determination (LCD) Law and Legal Definition

Local coverage determination (LCD) means a decision made by a fiscal intermediary(FI) or a medicare carrier under medicare part A or part B about the services and items that are reasonable and necessary. LCD also decides if a particular service should be covered on an intermediary-wide or a carrier-wide basis. Additionally, it makes decisions about the service that is reasonable and necessary for certain diagnoses and diagnosis codes. However, LCD does not cover determination on which procedure code must be assigned to a service, or a determination with respect to the amount of payment to be made for the service provided.