OA 294 denial code

Claim adjustment reason code 294. Often reported as OA 294.

Payment sent to an attorney

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 294 means

The payer issued payment for this claim to an attorney rather than directly to the provider.

This shows the payment went to a lawyer, which is common when a claim is tied to an accident, injury, or legal settlement. The attorney may hold the funds or pay providers from a settlement.

Your balance is not settled until the money actually reaches you.

Group codes seen with 294

On a remittance, 294 comes after a group code. These are the ones it is most often reported with:

• OA 294 (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

• The claim is part of an injury or liability case handled by an attorney.
• The patient directed payment to their attorney.
• A lien or legal arrangement routes payments through the attorney.

What to do next

1. Confirm the payee and amount with the payer.
2. Contact the attorney's office about the payment and any lien on file.
3. Keep the account open and follow up until the funds are received.

Related codes

• 293 (reason code) Payment sent to patient's employer