CO 246 denial code
Claim adjustment reason code 246. Often reported as CO 246.
Reporting only, not payable
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 .
What 246 means
The line is on the claim only for required reporting, so it carries no payment.
Some codes, such as quality reporting codes or tracking codes, must be sent but are not meant to be paid. The payer is confirming it received the line and there is no payment for it.
Usually no action is needed. The charge on such lines is often zero or a token amount.
Group codes seen with 246
On a remittance, 246 comes after a group code. These are the ones it is most often reported with:
- CO 246 (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.
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
- A quality measure code was billed on the claim.
- A tracking code required by the program was reported.
- A charge amount was placed on a line meant only for reporting.
What to do next
- Confirm the line is a reporting code and not a service you expected payment for.
- Post any charge on the line as a non-payable adjustment.
- Bill reporting codes at a zero or nominal charge if the payer prefers it.
Related codes
Source
Official wording: X12 Claim Adjustment Reason Codes list. The explanation on this page is our own plain-English wording, not the X12 text.
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