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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 the implantation of spinal cord stimulators (SCS) may be covered as therapies for the relief 
of chronic intractable pain. SCS is best suited for neuropathic pain, but may have some limited value in other 
types of nociceptive severe, intractable pain. Therapy consists of a short trial with a percutaneous implantation 
of neurostimulator electrode(s) in the epidural space for assessing a patients suitability for ongoing treatment 
with a permanent surgically implanted nerve stimulator. Performance and documentation of an effective trial is 
a prerequisite for permanent nerve stimulation. 
 
Selection of patients for implantation of SCS is critical to success of this therapy. SCS therapy should be 
considered as a late option after more conservative attempts, such as medications, physical therapy, 
psychological therapy or other modalities have been tried. 
 
Patients must have undergone careful screening, evaluation and diagnosis by a multidisciplinary team prior to 
implantation. (Such screening must include psychological, as well as, physical evaluation). Documentation of 
the history and careful screening must be available in the patient chart if requested. 
 
Many experts recommend that the temporary neurostimulator be placed in an Ambulatory Surgical Center 
(ASC) or outpatient hospital setting. However, the temporary neurostimulator trial can be done in an office 
setting if all the sterility, equipment, professional training and support personnel required for the proper 
surgery, and follow up of the patient are available. Permanent neurostimulators must be placed in an ASC or 
hospital. Physicians performing SCS trials in the office setting must have like privileges at a local hospital or 
ASC, or the providers must be subspecialty boarded in Pain Medicine by the American Board of 
Anesthesiology. 
 
It is preferable that physicians performing the SCS trial will also perform the permanent implant. If the 
physician implanting the trial neurostimulator does not or cannot implant the permanent neurostimulator, the 
patient should be informed of this in writing and given the name of the referral surgeon, who will implant the 
permanent neurostimulator(s). It is expected that accurate patient selection will lead to most patients going on 
to receive permanent implants. 
 
 
 
 
 Only patients who experience a positive response to a trial should proceed to a permanent implantation. All 
trials which proceed to permanent implant must have adequate documentation in the chart to support that 
decision. A successful trial should be associated with at least a 50% reduction of target pain, or 50% reduction 
of analgesic medications, and show some element of functional improvement. (Patients with reflex sympathetic 
dystrophy may show lower levels of improvement, since it takes longer periods for improvement than the 
typical 1 to 2 week trial). Physician judgment and experience will also be taken into account. Physicians with a 
low trial to permanent implant ratio (less than 50%) may/can/will be subject to post-payment review and may 
be asked to submit documentation as to the patient selection criteria, the radiologic imaging demonstrating 
proper lead placement, and the medical necessity of the trials. Failure to provide this documentation will be 
cause for post-payment denial and recoupment of reimbursement. It is understood that all patients may not have 
a favorable result of the trial implant; but careful selection should find the most appropriate patients. 
 
You can find this information in the Local Coverage Determination (LCD) Spinal Cord Stimulators for Chronic 
Pain L37632. 
 
If you want to read these Medicare rules, you can go to this website www.medicareappeal.com.