CO-246: This non-payable code is for required reporting only.
This code is informational only and was never expected to generate payment. It exists purely to satisfy a payer or regulatory reporting requirement. Seeing this code is not really a denial in the normal sense.
What the group code means
- CO
- Contractual Obligation. The provider is responsible and the amount cannot be billed to the patient.
Why it fires
- The code is a required quality-reporting or informational add-on code that carries no separate reimbursement by design
- The provider billed the code correctly as required for program compliance, such as certain quality reporting programs
Corrective actions, ranked
- 1
Confirm expected zero payment
Check whether this code is documented as a reporting-only code with no associated fee. If so, no action is needed.
- 2
Verify correct usage
Make sure the code was used in the context it is intended for, such as paired with the correct primary billable code.
- 3
Do not rebill
Since payment was never expected, do not resubmit or attempt to collect for this line.
Is it worth appealing
Not appealable and not necessary to appeal. This code is expected to show zero payment by design.
Other denial codes to check
Codes that share a remark code with this one, or that are reported under the same group code.
- CO-45Charge exceeds fee schedule/maximum allowable or contracted/legislated fee arrangement.
- CO-97The benefit for this service is included in the payment/allowance for another service/procedure that has already been adjudicated.
- CO-16Claim/service lacks information or has submission/billing error(s).
- CO-11The diagnosis is inconsistent with the procedure.
- OA-18Exact duplicate claim/service (Use only with Group Code OA except where state workers' compensation regulations requires CO)
- CO-29The time limit for filing has expired.
Retrieved 2026-07-18.
Do not let this happen again
Scrub the claim against NCCI PTP and MUE edits before you submit, free and in your browser.
Denial7 provides billing and administrative guidance based on published CMS and X12 sources. It is not medical advice, not a coverage determination, and not a guarantee of payment. NCCI and MUE edits are republished quarterly and payer policies vary by contract. Always confirm against the payer's own current policy before submitting or appealing.