Claim adjustment reason code
Denial code CO-5 meaning
CARC 5, usually seen as CO-5: The procedure code, or the type of bill, does not match the place of service on the claim.
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- Reason code
- CARC 5
- Short name
- Code does not fit the place of service
- Plain meaning
- The procedure code, or the type of bill, does not match the place of service on the claim.
- Group codes
- CO-5: 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 place of service code is wrong for where the service happened.
- The service is not payable in that setting, such as a facility-only code billed with an office place of service.
What to check before resubmitting
- Compare the place of service code to the CMS place of service list.
- Fix the place of service or the code and resubmit.
Remark codes that often come with it
Related reason codes
Related pages
Questions
What does denial code CO-5 mean?
The procedure code, or the type of bill, does not match the place of service on the claim. This is Rivvi's plain-English summary of CARC 5. X12's exact wording is on x12.org.
How do I fix CO-5?
Compare the place of service code to the CMS place of service list. Fix the place of service or the code and resubmit.
Can I bill the patient for CO-5?
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 5?
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.