CO-246Contractual ObligationPayment Adjustment
CO-246 Denial Code: Non-payable reporting-only code
This line was for required reporting only and carries no payment — expected for quality/tracking codes.
Why CO-246 happens
- ●Quality reporting codes (category II CPT) or informational HCPCS billed as required
How to fix a CO-246 denial
- 1
No action — this is the designed outcome for reporting lines
How to prevent it
Zero-dollar or nominal-charge these lines so AR doesn't inflate.
Drowning in CO-246 denials?
OakClaim works every denial within 48 hours and builds prevention rules so they stop recurring.