Claim adjustment reason code
Denial code CO-246 meaning
CARC 246, usually seen as CO-246: This code is for reporting only and is not paid.
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- Reason code
- CARC 246
- Short name
- Reporting-only code
- Plain meaning
- This code is for reporting only and is not paid.
- Group codes
- CO-246: 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
- A tracking or quality code was billed with a charge.
What to check before resubmitting
- Bill quality and tracking codes with a zero or token charge, as the payer requires.
Related reason codes
Related pages
Questions
What does denial code CO-246 mean?
This code is for reporting only and is not paid. This is Rivvi's plain-English summary of CARC 246. X12's exact wording is on x12.org.
How do I fix CO-246?
Bill quality and tracking codes with a zero or token charge, as the payer requires.
Can I bill the patient for CO-246?
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 246?
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.