CO 74 denial code

Claim adjustment reason code 74. Often reported as CO 74.

Indirect teaching cost 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 .

What 74 means

The inpatient payment includes an add-on or adjustment tied to the hospital's teaching activity.

Teaching hospitals often receive an extra percentage on inpatient payments to reflect the higher operating costs of training residents. This code reports that indirect medical education amount on the claim.

It is informational for most billers. The figure comes from the hospital's teaching ratio and the payer's rate setup, so questions about it usually go to reimbursement or contracting staff rather than to a denial queue.

Group codes seen with 74

On a remittance, 74 comes after a group code. These are the ones it is most often reported with:

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

What to do next

  1. Post the line as a pricing detail and confirm the total paid matches the expected inpatient rate.
  2. Ask your reimbursement team to check the payer's teaching factor if the amount looks off.
  3. Track the adjustment over time to catch rate file errors that affect many claims.

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.

Last checked . Spotted a problem? Report a correction.