Claim adjustment reason code

Denial code CO-24 meaning

CARC 24, usually seen as CO-24: The service is paid through a capitation or managed care arrangement, not per claim.

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Reason code
CARC 24
Short name
Covered under a capitation agreement
Plain meaning
The service is paid through a capitation or managed care arrangement, not per claim.
Group codes
CO-24: Contractual obligation. The provider absorbs the amount under its contract or the payer's rules. Do not bill the patient for it.

Plain-English summary written by Rivvi. X12 owns the CARC list and its exact wording, which is not reproduced here. Read it on the X12 CARC list (list dated November 1, 2025, checked October 23, 2026). This page does not decide how a claim is paid.

Common causes

  • The patient is assigned to a managed care plan that pays the provider a set amount per member.

What to check before resubmitting

  1. Confirm the patient's plan and assigned provider.
  2. If the patient is not in that arrangement, ask the payer to review.

Related reason codes

Related pages

Questions

What does denial code CO-24 mean?

The service is paid through a capitation or managed care arrangement, not per claim. This is Rivvi's plain-English summary of CARC 24. X12's exact wording is on x12.org.

How do I fix CO-24?

Confirm the patient's plan and assigned provider. If the patient is not in that arrangement, ask the payer to review.

Can I bill the patient for CO-24?

With group code CO, no. CO means the provider absorbs the amount under its contract or the payer's rules.

Which group codes come with CARC 24?

Most often CO (contractual obligation). The group code, not the reason code, says who owes the amount.

What is the difference between a CARC and a RARC?

A claim adjustment reason code (CARC) says why a claim line was paid differently than billed. A remittance advice remark code (RARC) adds detail, such as which field is missing.

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