CO 144 denial code

Claim adjustment reason code 144. Often reported as CO 144 or OA 144.

Incentive adjustment

Unofficial reference. This is our own plain-English explanation, not the official code text. Payer rules differ. Verify with the payer and the official X12 code list. AlphaPrefix is not affiliated with X12, CMS or any payer. Data last updated Nov 11, 2026.

What 144 means

The payment was raised or changed because of an incentive, such as using a preferred product or service.

Some payers adjust payment to reward certain choices, for example using a preferred drug, supply or service. This code shows that part of the payment difference came from an incentive rather than from normal pricing.

It usually works in the provider's favor, but read it together with the other adjustments to see the net effect on the claim.

Group codes seen with 144

On a remittance, 144 comes after a group code. These are the ones it is most often reported with:

• CO 144 (Contractual Obligation): The provider's side of the ledger. The reduction comes from the payer contract or a rule the provider has to follow, and the patient normally cannot be billed for it.
• OA 144 (Other Adjustment): Used for adjustments that are neither the provider's contractual write-off nor the patient's share. It often appears with coordination of benefits, for example when another payer already paid.

The payer chooses the group code for each adjustment, so the same reason code can appear with another group code on your remittance. Read the two together. More about group codes.

Common causes

• You used a product or service on the payer's preferred list.
• The payer runs an incentive program that changes payment for certain choices.
• A contract term adds an incentive amount for meeting specific criteria.

What to do next

1. Check which incentive program applied and confirm it matches your contract.
2. Post the incentive amount in a way that keeps it separate from contractual adjustments.
3. Ask the payer to explain the calculation if the incentive amount looks wrong.

Related codes

• 161 (reason code) Bonus for meeting performance goals
• 143 (reason code) Part of the payment is deferred