Final answer:
Local Coverage Determinations are administered by Medicare Administrative Contractors, which are private insurers responsible for making coverage decisions for Medicare services in their respective jurisdictions.
Step-by-step explanation:
Local Coverage Determinations (LCDs) are administered by Medicare Administrative Contractors (MACs). MACs are private health care insurers that have been awarded geographic jurisdictions by the Centers for Medicare & Medicaid Services (CMS). They are responsible for developing LCDs, which are decisions by a MAC that whether it will cover a particular service within the MAC's jurisdiction under Medicare Part A or Part B. These determinations are made based on whether the service is considered to be reasonable and necessary under Section 1862(a)(1)(A) of the Social Security Act.
LCDs are very important as they directly affect the reimbursement that health care providers will receive for services rendered to Medicare beneficiaries. Health care providers in the jurisdiction must adhere to these determinations to ensure their services are covered and accordingly reimbursed by Medicare.