CO 246: Non-Payable Tracking Code
This code is reported for tracking only and was never going to pay.
Nothing to recover. Confirm it is a reporting code and make sure it is not masking a payable line that was never billed.
See a finished review first
- No patient data
- No BAA
- No charge
- No pitch
What CO 246 means
CO: Contractual obligation. The provider absorbs it and cannot bill the patient.
So the balance cannot move to the patient. Either the appeal recovers it or the practice absorbs it. That makes the appeal decision the whole decision on this line.
Is It Worth Appealing?
Not a denial. A contracted write-down or patient responsibility. Not money you lost.
Why It Fires
In the order we see it.
A quality or tracking code that is required to be reported and is not payable.
What to Do With CO 246, Step by Step
Nothing to recover. Confirm it is a reporting code and make sure it is not masking a payable line that was never billed.
- 1Step 1: Read the remark code. Find the remark code printed next to CO 246 on the 835 or EOB. It says what the payer wants back.
- 2Step 2: Find the cause. Match the denial to one of the cause in Why It Fires above, and fix that one.
- 3Step 3: Do this. Nothing to recover. Confirm it is a reporting code and make sure it is not masking a payable line that was never billed.
The common mistake. Do not appeal it. Do check whether the payable service it accompanies actually went out on a claim.
Free: the Denial Code Appeal Playbook. 53 codes on one sheet: appeal, fix and resubmit, or let it go, and what to attach. Get the playbook
CO 246 description
This code is reported for tracking only and was never going to pay.
This code is reported for tracking only and was never going to pay. So the balance cannot move to the patient. Either the appeal recovers it or the practice absorbs it. That makes the appeal decision the whole decision on this line.
This is our plain-English wording, not the official X12 text. X12 asserts copyright over the published descriptions, so we write our own and say what it means for the money rather than restating the code.
Where this comes from. This is our own reading of the code, not the payer's and not a copy of the standards text. We classify it from how these denials actually resolve. Where we are unsure, we say so rather than guessing.
Your Questions Answered
What does CO 246 mean?
This code is reported for tracking only and was never going to pay. Contractual obligation. The provider absorbs it and cannot bill the patient.
Can you appeal CO 246?
Not a denial. Nothing to recover. Confirm it is a reporting code and make sure it is not masking a payable line that was never billed.
Why does CO 246 happen?
A quality or tracking code that is required to be reported and is not payable.
What do I do with CO 246?
Step 1: Read the remark code. Find the remark code printed next to CO 246 on the 835 or EOB. It says what the payer wants back. Step 2: Find the cause. Match the denial to one cause: A quality or tracking code that is required to be reported and is not payable. Step 3: Do this. Nothing to recover. Confirm it is a reporting code and make sure it is not masking a payable line that was never billed.
Most searched: CO 97 · CO 96 · OA 23 · PR 204 · CO 109 · CO 197 · CO 45 · CO 50
How Much of This Is Sitting in Your Write-Off Pile?
No patient data. No BAA. No charge.
Upload your denial summary for the last 90 days. 4 columns: payer, CARC code, count, billed amount. You get back which were winnable and what they were worth.