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The rules say that plans must pay for a medical service or item if regular Medicare would pay for it in this case. 
You can find this rule at 42 Code of Federal Regulations (CFR) Section 422.101. 

The rules state that a lower limb prosthesis is covered when the beneficiary: 

1. Will reach or maintain a defined functional state within a reasonable period of time; and 
2. Is motivated to ambulate. 

FUNCTIONAL LEVELS: 
 
A determination of the medical necessity for certain components/additions to the prosthesis is based on the 
beneficiary's potential functional abilities. Potential functional ability is based on the reasonable expectations 
of the prosthetist, and treating practitioner, considering factors including, but not limited to: 

1. The beneficiary's past history (including prior prosthetic use if applicable); and 
2. The beneficiary's current condition including the status of the residual limb and the nature of other 
medical problems; and 
3. The beneficiary's desire to ambulate. 

Clinical assessments of beneficiary rehabilitation potential must be based on the following classification levels: 
 
Level 0: Does not have the ability or potential to ambulate or transfer safely with or without assistance and a 
prosthesis does not enhance their quality of life or mobility. 
 
Level 1: Has the ability or potential to use a prosthesis for transfers or ambulation on level surfaces at fixed 
cadence. Typical of the limited and unlimited household ambulator. 
 
Level 2: Has the ability or potential for ambulation with the ability to traverse low level environmental barriers 
such as curbs, stairs or uneven surfaces. Typical of the limited community ambulator. 
 
Level 3: Has the ability or potential for ambulation with variable cadence. Typical of the community ambulator 
who has the ability to traverse most environmental barriers and may have vocational, therapeutic, or exercise 
activity that demands prosthetic utilization beyond simple locomotion. 
 
Level 4: Has the ability or potential for prosthetic ambulation that exceeds basic ambulation skills, exhibiting 
high impact, stress, or energy levels. Typical of the prosthetic demands of the child, active adult, or athlete. 
 
The records must document the beneficiary's current functional capabilities and his/her expected functional 
potential, including an explanation for the difference, if that is the case. It is recognized, within the functional 
classification hierarchy, that bilateral amputees often cannot be strictly bound by functional level 
classifications. 

You can find this rule in the Local Coverage Determination (LCD) for Lower Limb Prostheses, L33787. 
 
The rules state that Use of L5968, L5982, L5984 or L5986 is based on the beneficiary's K-level modifier (K0-
K4), as referenced in the LCD. 

Addition codes for lower extremity prostheses, L5970, L5971, L5972, L5974, L5975, L5976, L5978, L5979, 
L5980, L5981, L5987 are considered an upgrade to the SACH foot. The beneficiary may qualify for an 
upgraded prosthetic foot based on their assigned K-level modifier (K0-K4) as referenced in the LCD. A single addition code (L5970, L5971, L5972, L5974, L5975, L5976, L5978, L5979, L5980, L5981, L5987) can fully 
describe a complete foot and thus the use of more than one code would be considered incorrect coding 
(unbundling). 

L5968, L5982, L5984, L5985, L5986, L5988, L5990 are additional features and/or functions that do not 
describe a complete prosthetic foot and may be used in combination with L5970, L5971, L5972, L5974, 
L5975, L5976, L5978, L5979, L5980, L5981, and L5987. The use of additional feature L-codes may also 
depend on the assigned K-Level modifier (K0-K4) as referenced in the LCD. 

L5980 describes a product that can be used for either endoskeletal or exoskeletal lower limb construction. The 
Flex Foot has an energy storing J-shaped keel design. Heel component is attached onto the J-shaped keel 
section. The Flex Foot System's J-shaped keel design extends proximally as a monolithic composite shank. 
Shank height is determined and modified by supplier to utilize the dynamics of the composite shank. L5980 
includes foot cover.

L5981 describes a product that can be used for either endoskeletal or exoskeletal lower limb construction. The 
Flex Walk has an energy storing J-shaped keel design. Heel component is attached to the J-shaped keel section. 
The Flex Walk J-shaped keel design proximally terminates at a nonadjustable fixed height determined and 
modified by the prosthetic foot manufacturer. L5981 includes foot cover. 

L5987 describes a product that can be used for either endoskeletal or exoskeletal lower limb construction. All 
components are integrated as a single product, i.e. not an assembly of separate products or components. The 
product has an energy storing J-shaped keel design. Heel component is attached onto the J-shaped keel section. 
Vertical loading pylon allows controlled motion for shock absorption. This code does not describe vertical 
loading or shock absorption achieved from the inherent flexibility of the J-shaped keel section. L5987 includes 
foot cover. 

You can find this rule in the Local Coverage Article for Lower Limb Prostheses - Policy Article, A52496. 
 
If you want to read these Medicare rules, you can go to this website www.medicareappeal.com. 
 
The Plan contract says that the Plan covers items and services in accordance with Medicare rules.