835 Denial Combination

CO-246

CO

Contractual Obligation · Claim-Level Adjustment

Contractual Obligation

What This Combination Means

This code appears on the ERA/EOB as an informational line item required by regulatory or payer reporting standards, not as a true claim adjustment. The amount reported against CARC 246 is non-payable by design and must be written off contractually, though it typically reflects a zero-dollar line or a procedural placeholder rather than an actual service denial.

Financial Responsibility

provider writeoff

The provider must write off any amount associated with this code per contractual obligation. This is a reporting requirement, not a payment adjustment, so typically no actual financial impact occurs beyond documentation.

N/A

Appeal Success

Immediate (informational write-off)

Avg. Resolution

Easy

Difficulty

No

Appealable

Step-by-Step Resolution

Steps tailored specifically to this CO-246 combination — not generic advice.

Not Appealable:This is a non-payable reporting code required by contract or regulation, not an adjudication decision subject to appeal.
  1. 1

    Confirm the line item is marked as informational or zero-dollar in your practice management system

    CARC 246 is used for mandatory reporting, not for actual service denials requiring follow-up

  2. 2

    Apply contractual write-off to the line item in your billing system

    This ensures accurate accounting and prevents the amount from appearing as collectible or patient-billable

  3. 3

    Document the code occurrence for compliance and internal audit purposes

    Retain ERA records showing CARC 246 to demonstrate adherence to payer reporting requirements

Specialty Context

How CO-246 typically presents across different practice types.

Dental

May appear on dental claims when payers require reporting of non-covered procedure codes (e.g., cosmetic services) for tracking purposes even though no payment is expected.

Medical

Commonly used for ancillary or add-on codes that must be reported for data collection, quality metrics, or regulatory compliance but are not separately reimbursable.

Behavioral Health

May appear when reporting bundled psychotherapy add-on codes or crisis service modifiers required for state or federal tracking but not eligible for separate payment.

Individual Code References

View the standalone definition for each code in this combination.

CARC 246

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Synthesized from official definitions — not from training data

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