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.
Retrieved 2026-07-18.
Do not let this happen again
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DenialPath 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.