CO-256Contractual ObligationContractual
CO-256 Denial Code: Service not payable per managed care contract
The service is not payable per the managed care contract.
Why CO-256 happens
- ●Service carved out or bundled under the managed care agreement
How to fix a CO-256 denial
- 1
Review the contract terms for the service
- 2
Bill the correct carve-out entity, or adjust per contract
How to prevent it
Document carve-outs by payer contract in billing rules.
Drowning in CO-256 denials?
OakClaim works every denial within 48 hours and builds prevention rules so they stop recurring.