What CO-242 means
The plan only covers this service from in-network providers or the patient's assigned primary care provider.
The CO group code means this amount is a contractual obligation: under most contracts you cannot bill it to the patient.
Common causes
- Out-of-network provider
- No referral from the assigned PCP
How to fix it
- Verify network status and referral rules during eligibility
- Obtain a referral, or inform the patient of out-of-network costs before the visit
Check the remark code (RARC) that came with the denial and the payer's own policy, since rules vary by payer and plan. This is a plain-English summary written by GetMax; the official code text is published by X12 at x12.org/codes.
Prevent it next time
Most denials are caused before the claim is sent. See 12 ways to reduce claim denials, or let our denial management team work them for you.