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246
CO - Contractual ObligationCoverage

Denial Code CO-246: Service Not Payable per Managed Care Contract

What Does Code 246 Mean?

This service is not payable per your managed care contract. The provider's contract with the payer excludes or does not cover this service.

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?

Service is excluded from the provider's managed care contract.

How to Resolve It

  1. 1Review your contract for the service exclusion
  2. 2If the exclusion is incorrect, dispute with contract documentation
  3. 3Consider renegotiating the contract to include this service

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