
Accurate coding is the foundation of compression therapy reimbursement—and one of the most common failure points in wound care billing. As payer audits intensify and documentation standards tighten, even small coding errors can trigger medical necessity denials, downcoding, or post-payment recoupments. For clinics that routinely apply multi-layer compression wraps, Unna boots, compression garments, or pneumatic compression devices, incorrect CPT or HCPCS selection quietly erodes revenue month after month.
Most denials happen not because the treatment was inappropriate, but because the wrong CPT or HCPCS code was selected, modifiers were missing, or the documentation didn’t support the code billed. For example, CPT 29580 and CPT 29581 may seem similar, yet they represent entirely different procedures. HCPCS supply codes like A6452 or A6530 require precise usage based on payer rules—and many clinics unknowingly bill them incorrectly. Meanwhile, pneumatic compression device codes (E0650–E0652) involve strict conservative therapy requirements that are often misunderstood.
For a full overview of how compression therapy is billed and clinical documentation requirements, refer to our Compression Therapy Billing Guide. This coding guide is designed as a companion resource, offering deeper insight into how to code compression therapy accurately and avoid preventable denials. Today, payers are no longer accepting vague or incomplete compression coding. They expect claims to clearly reflect:
This guide focuses specifically on coding accuracy. It breaks down every CPT and HCPCS code used for compression therapy, explaining when each applies, what documentation is required, and how to avoid coding pitfalls that trigger denials. Whether you are coding multi-layer wraps, Unna boots, compression supplies, or pneumatic compression devices, this guide gives you step-by-step instructions to code confidently and compliantly.
If your practice wants to strengthen coding accuracy, prevent recoupments, and ensure faster reimbursement, our Wound Care Billing & Coding Services can audit your compression therapy documentation and coding practices to help secure proper payment the first time.
Blog Outline
Before selecting the correct code for compression therapy, it is essential to understand whether the service qualifies as a procedure (CPT) or a supply/DME item (HCPCS). This distinction drives reimbursement, documentation requirements, and modifier use—yet it remains one of the most common sources of error in wound care and vascular practices. Compression therapy can fall into any of the following categories:
CPT codes describe hands-on procedures performed by a clinician. In compression therapy, these primarily include:
These codes require:
When billed correctly, these procedures are among the most reimbursable compression services.
For additional billing context—including documentation expectations and clinical use cases—refer to our comprehensive Compression Therapy Billing Guide.
HCPCS Level II codes describe materials, equipment, and supplies, not procedures.
These codes include:
A-codes (Supplies)
Used for elastic wraps, bandages, multilayer dressing components, and compression garments:
These codes may or may not be separately billable depending on:
E-codes (DME Devices)
Used for intermittent pneumatic compression devices and related components:
These require:
For a deeper breakdown of payer coverage criteria, visit our Compression Therapy Insurance Coverage Guide.
This is where most coding mistakes occur.
Allowed together (when permitted by payer):
✔ CPT 29581 (multi-layer wrap) + ✔ A-code supply (if not bundled AND payer covers it)
Not allowed together:
✘ CPT 29581 + compression stockings (A6530–A6549)
✘ CPT 29580 + routine ACE bandages
✘ CPT compression codes within consolidated billing settings (SNF Part A)
Each payer has its own bundling logic, which is why internal coordination between coders, clinicians, and billers is crucial.
| Use Case | Code Type | Code Range | Who Bills It | Notes |
|---|---|---|---|---|
| Compression procedure (wrap or boot applied) | CPT | 29580–29582 | Clinician | Requires procedure documentation |
| Compression supplies | HCPCS A-codes | A6450–A6549 | Clinic or DME vendor | Coverage varies by payer |
| Pneumatic compression pumps | HCPCS E-codes | E0650–E0652 | DME supplier/clinic | Requires PA + conservative therapy failure |
| Routine bandaging | No reimbursement | N/A | N/A | Considered non-covered unless tied to wound care |
This table will help coders quickly identify whether a compression service should be billed as a procedure, supply, DME, or non-covered item.
Correctly selecting the appropriate CPT code is essential for proper reimbursement. While compression therapy may appear clinically straightforward, each CPT code carries specific documentation, anatomical, and medical necessity requirements. Misuse of these codes is a leading cause of CO-50 denials, payer audits, and claim downcoding. Below is a detailed breakdown of all CPT codes associated with compression therapy.
CPT 29580 represents the application of an Unna boot, a medicated (usually zinc-oxide) paste bandage applied from the foot to just below the knee to treat venous stasis ulcers and chronic venous insufficiency.
Use this code when the provider:
To avoid denials, charting must include:
CPT 29581 is used to describe a multi-layer compression wrap applied to a lower extremity (typically 3- or 4-layer systems). This is the most commonly underbilled compression therapy code in wound care.
Bill this code when a provider:
Payers now require:
Missing CEAP or wound details is one of the most common causes of CO-50 denials.
Do not bill A-code supplies with CPT 29581 unless:
CPT 29582 covers compression wraps applied to upper extremities, thighs, or other anatomical sites, not the lower leg addressed by 29581.
Appropriate when applying:
Must include:
| CPT Code | Description | Anatomical Area | Best Use Case | Documentation Must Include |
|---|---|---|---|---|
| CPT 29580 | Unna boot application | Lower extremity | Venous ulcers, stasis dermatitis | Wound measurements, CEAP classification, zinc-oxide boot usage |
| CPT 29581 | Multi-layer compression wrap | Lower leg | Venous insufficiency, multilayer treatment | Wound details, edema grade, CEAP classification |
| CPT 29582 | Multi-layer compression wrap | Upper extremity or other areas | Lymphedema, post-surgery edema | Limb measurements, site-specific edema documentation |
While CPT codes capture procedures, HCPCS Level II codes describe the supplies, materials, and garments used in compression therapy. These codes are frequently misunderstood because payers classify many compression supplies as routine, non-covered, or bundled depending on the setting of care. The correct use of A-codes is essential for both compliance and maximizing reimbursement. Below is a breakdown of the primary HCPCS categories used in compression therapy.
These are among the most commonly used compression supplies—but also the most frequently denied. Payers often consider them routine, non-covered supplies unless tied directly to active wound care and billed under specific circumstances.
| Code | Description |
|---|---|
| HCPCS A6450 | Elastic bandage, 2-inch width |
| HCPCS A6451 | Elastic bandage, 3-inch width |
| HCPCS A6452 | Elastic bandage, 4-inch width |
| HCPCS A6453–A6456 | Larger widths and non-sterile elastic bandage variants |
These are components of multi-layer compression systems, used in 3-layer or 4-layer wraps. Although the procedure (CPT 29581) is billable, the supplies may or may not be, depending on the payer and place of service.
| Code | Description |
|---|---|
| A6441–A6449 | Multiple-layer compression wrap components |
| A6450–A6452 | Elastic bandages used as part of multi-layer compression systems |
✔ Allowed in:
✘ Not allowed / bundled in:
These codes generate the highest denial rates across all compression-related HCPCS billing.
Because Medicare and most commercial plans classify stockings as non-covered DME, except under specific circumstances (e.g., lymphedema or surgical dressing benefits).
| Code | Description |
|---|---|
| A6530–A6539 | Below-knee compression stockings with varying compression strengths |
| A6540–A6549 | Thigh-high or full-leg compression garments |
Some compression supplies fall under surgical dressing policies, especially when used with an active wound.
Examples include:
Coverage depends heavily on:
| HCPCS Range | Description | Coverage Likelihood | Notes |
|---|---|---|---|
| HCPCS A6450–A6456 | Elastic bandages | Low | Often considered routine care |
| HCPCS A6441–A6452 | Multi-layer wrap supplies | Moderate | Bundling rules vary by payer |
| HCPCS A6530–A6549 | Compression stockings | Low–Moderate | DME limits and non-coverage are common |
| HCPCS A6200–A6457 | Surgical dressing components | Moderate–High | Must meet wound dressing LCD requirements |
Gradient compression stockings continue to generate the highest denial rate of any compression-related HCPCS family—primarily because most payers, including Medicare, classify them as non-covered DME unless strict medical necessity criteria are met. Coders must understand when these codes are billable, when they are excluded, and what documentation is required to avoid automatic denials. The A6530–A6549 code range includes below-knee, thigh-high, and full-leg compression garments typically prescribed for venous disease, lymphedema, and post-surgical swelling. However, coverage hinges on diagnosis, setting, and payer policy.
| Code Range | Description | Typical Use | Coverage Outlook |
|---|---|---|---|
| HCPCS A6530–A6539 | Below-knee gradient compression stockings | Venous disease, lymphedema | Low to moderate (payer dependent) |
| HCPCS A6540–A6549 | Thigh-high or full-leg compression stockings | Lymphedema, post-surgical swelling | Limited; often requires DME vendor |
These codes are categorized as DME, not medical supplies, which means:
Most insurers—including Medicare—deny stocking claims unless they meet one of the following exceptions:
✔ Lymphedema (I89.0)
✔ Post-thrombotic syndrome (with documentation of chronic edema or venous obstruction)
✔ Part of a surgical dressing (rare scenario)
Medicare allows coverage only when stockings meet the criteria under surgical dressing policies, such as after skin grafts or surgical wounds requiring compression.
Expect denials if billed for:
These fall under Medicare’s definition of “personal comfort items” and are considered patient responsibility.
Commercial insurers may follow similar logic, although some plans allow limited coverage with prior authorization.
When coverage is possible, documentation must include:
Missing limb measurements is the most common documentation error.
Because stockings are DME:
For claims through Medicare, expect non-coverage unless tied to a surgical dressing benefit.
Denied Claim Example
Reason: Venous insufficiency alone does not support stocking coverage.
Approved Claim Example
Outcome: Approved after PA — meets criteria for chronic lymphedema.
Intermittent pneumatic compression (IPC) devices are high-value DME items commonly used for chronic lymphedema, severe venous insufficiency with refractory edema, and select post-thrombotic syndromes. They require precise HCPCS coding (E0650–E0652), strong medical necessity documentation, and often prior authorization. Mistakes in coding or documentation usually result in immediate denials or requests for additional clinical records. This section explains the codes, when each applies, what payers expect for coverage in 2025, and how to construct an audit-proof claim.
| HCPCS | Short Description |
|---|---|
| HCPCS E0650 | Intermittent pneumatic compression device, non-segmental |
| HCPCS E0651 | Intermittent pneumatic compression device, segmental |
| HCPCS E0652 | Intermittent pneumatic compression device, segmental with calibrated gradient pressure |
Key distinction: Segmental devices (E0651, E0652) provide independent inflation/deflation across chambers and are often preferred/required for lymphedema. E0652 adds calibrated gradient control.
Most payers (Medicare, Medicaid, and commercial) require similar foundational documentation before paying for an IPC pump. While exact wording varies by plan, the following elements are universally expected:
Refer to your payer’s LCD or coverage policy for exact thresholds and wording; where available, include direct quotes from the policy in the justification.
Use a structured template in the chart. At minimum, include:
Including a short physician justification paragraph such as “IPC device medically necessary because patient with chronic lymphedema failed ≥4 weeks of conservative therapy, documented limb volume reduction <10% and recurrent cellulitis risk” will help preempt requests for more info.
Before submitting, run a payer-specific authorization check and attach the PA number to the claim when required.
If billing through a clinician (e.g., physician-owned DME), ensure charges are separated properly between professional services and equipment lines.
| Denial Cause | Fix / Prevention |
|---|---|
| Lack of documented conservative therapy | Include dated conservative therapy notes and show a clear treatment timeline |
| Missing limb measurements | Add standardized circumference chart entries |
| Supplier not DMEPOS enrolled | Verify supplier enrollment and PTAN before ordering |
| Incorrect modifier (e.g., NU vs RR) | Follow payer-specific rental vs purchase policy |
| No face-to-face encounter | Ensure physician or nurse practitioner documents a face-to-face or telehealth visit if required |
| Missing PA | Obtain and attach prior authorization number with supporting clinical notes |
Outcome: Denied for medical necessity. Appeal requires retrospective conservative therapy evidence.
Correct ICD-10 selection is one of the strongest predictors of reimbursement success for compression therapy. Payers increasingly deny compression claims when the associated diagnosis does not demonstrate medical necessity (CO-50), even if the procedure is clinically appropriate. This section provides a complete medical necessity mapping for compression therapy, including ICD-10 codes that support:
These diagnosis codes must align with clinical documentation, including wound measurements, CEAP classification, edema grading, and conservative therapy history (when applicable).
These codes represent strong medical necessity for compression therapy, consistently validated across Medicare LCDs and commercial payer policies.
| ICD-10 | Description |
|---|---|
| ICD I87.2 | Chronic venous insufficiency |
| ICD I87.011–I87.019 | Chronic venous hypertension with ulcer |
| ICD I87.021–I87.029 | Chronic venous hypertension with inflammation |
| ICD I87.031–I87.039 | Chronic venous hypertension with ulcer & inflammation |
Clinical Relevance:
These diagnoses strongly justify CPT 29580 (Unna boot) and CPT 29581 (multi-layer venous wrap) when paired with wound documentation.
These are among the strongest ICD-10 indicators for compression therapy.
| ICD-10 Range | Description |
|---|---|
| ICD L97.2xx | Ulcers of calf (right/left) |
| ICD L97.3xx | Ulcers of ankle (right/left) |
| ICD L97.4xx / L97.5xx | Midfoot / heel ulcers |
| ICD L97.8xx / L97.9xx | Lower-extremity ulcers, other & unspecified |
Documentation Requirement: Must include depth (breakdown of skin, fat layer exposed, necrosis, bone involvement).
| ICD-10 | Description |
|---|---|
| ICD I89.0 | Lymphedema, not elsewhere classified |
| ICD Q82.0 | Congenital lymphedema |
| ICD I97.2 | Post-mastectomy lymphedema |
Best matched with:
Lymphedema is a leading indication for pneumatic compression device coverage.
Some edema codes can support compression therapy only when accompanied by clinical severity and functional impairment.
| ICD-10 | Description | Notes |
|---|---|---|
| ICD R60.0 | Localized edema | Must document medical necessity; often denied alone |
| ICD R60.1 | Generalized edema | Use caution; link to underlying cause |
| ICD R60.9 | Edema, unspecified | Weak standalone code; pair with venous/lymphatic codes |
Warning:
Billing compression therapy only with R60.x is a common reason for CO-50 denials.
Always pair R60.x with a root cause such as I87.x, L97.x, or I89.0.
Some edema codes can support compression therapy only when accompanied by clinical severity and functional impairment.
| ICD-10 | Description |
|---|---|
| ICD I82.5xx | Chronic DVT / iliac or femoral thrombosis |
| ICD I87.0 | Post-thrombotic syndrome |
| ICD I73.9 | Peripheral vascular disease (use with caution) |
These codes support compression therapy when the clinical notes link the therapy to:
Avoid pairing these diagnoses with 29580/29581/29582 unless documentation justifies medical necessity:
| ICD-10 | Description |
|---|---|
| ICD M79.89 | Leg swelling (non-specific) |
| ICD R22.4 | Localized swelling, lower limb |
| ICD Z48.00–Z48.03 | Aftercare codes |
| ICD Z09 / Z51.89 | Follow-up encounters |
| ICD Z74.x | Limited mobility |
| ICD-10 Category | Supports CPT 29580 | Supports CPT 29581 | Supports CPT 29582 | Supports DME (E0650–E0652) |
|---|---|---|---|---|
| Venous ulcers (L97.x) | ✔ | ✔ | ✔ (if upper extremity) | Sometimes |
| Venous insufficiency (I87.2) | ✔ | ✔ | Conditional | Rare |
| Lymphedema (I89.0) | ✔ | ✔ | ✔ | ✔✔✔ Strongest |
| Post-thrombotic syndrome | ✔ | ✔ | ✔ | ✔ |
| Edema (R60.x) | Conditional | Conditional | Conditional | Conditional |
| Post-surgical swelling (I97.2) | ✖ | ✖ | ✔ | ✔ |
| Varicose veins (I83.x) | ✔ if ulcer present | ✔ if ulcer present | Conditional | Rare |
“CEAP C6 venous insufficiency. Venous ulcer on right lower leg measuring 3.1 × 2.8 × 0.2 cm. Moderate serous drainage. Edema 3+. Applied 4-layer compression. Patient tolerated well.”
Codes: CPT 29581 + ICD-10 L97.212 + I87.2
“Stage II lymphedema of left arm. Limb circumference 41 cm → 39 cm after conservative therapy (6 weeks). Minimal improvement. Home IPC device medically necessary to prevent progression.”
Codes: E0651 + ICD-10 I89.0
CPT 29581
ICD-10: R60.0 (Localized edema)
Denied: Does not support medical necessity.
Correct approach: Add underlying disease diagnosis (e.g., I87.2).
Compression therapy is one of the most clinically effective yet administratively challenging services in wound care. From CPT procedures like 29580 and 29581 to HCPCS supply codes and DME categories such as E0651 and A6530, every code carries strict billing rules, documentation expectations, and payer-specific coverage criteria. The smallest gaps—missing CEAP classification, incomplete limb measurements, incorrect pairing of ICD-10 codes, or improper modifier use—can instantly convert a medically necessary treatment into a denied claim.
Correct coding is more than a billing task. It is a compliance safeguard, a revenue protection strategy, and a patient care enabler. When providers and billing teams apply the correct CPT, HCPCS, and ICD-10 codes, reimbursement becomes predictable, audits become manageable, and clinicians are free to focus on healing rather than paperwork. When coding is inaccurate, practices face CO-50 denials, recoupments, audit exposure, and delayed patient care plans.
As payer rules continue tightening in 2025, coding compression therapy without expert support becomes increasingly risky. That is why clinics, wound centers, DME suppliers, SNFs, and vascular providers trust MedStates to manage the complexity. Our team understands LCD policies, payer-by-payer coverage nuances, and the documentation details that make or break compression therapy claims.
We help you code correctly— the first time, every time.
Strengthen Your Compression Therapy Billing With MedStates
If your organization is struggling with:
Our wound care billing experts will evaluate your current compression therapy documentation, coding patterns, and payer denials—and show you exactly what to fix to improve approvals and eliminate preventable revenue loss.
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