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235
CO - Contractual ObligationPayment Adjustment
Denial Code CO-235: Sales Tax Adjustment
What Does Code 235 Mean?
Sales tax adjustment. The payer has adjusted the claim for applicable sales tax on medical supplies or equipment.
Group Code CO (Contractual Obligation): The provider has agreed to accept the payer's determination. The patient is generally not responsible for this amount.
Why Does This Happen?
State sales tax applied or excluded on medical supplies/DME.
How to Resolve It
- 1Verify if sales tax should be included per state law
- 2Adjust billing to include or exclude tax as appropriate
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