CARC 246 – This non-payable code is for required reporting only

What it means

Code 246 doesn't mean a claim or line was denied or reduced. It's a flag payers use to show that a piece of information is being reported for regulatory, statistical, or compliance purposes, not because payment was affected. You'll typically see it alongside other codes that explain the actual payment decision.

Common causes

A payer is required to report certain data (e.g., value-based care metrics, risk adjustment, or regulatory tracking) and uses this code to flag that line item
The code appears as a secondary or informational entry alongside the true adjustment or payment code
Claims processing systems automatically attach this code when specific line-level data elements are present, regardless of payment outcome

How to fix it

Check the remittance advice for any accompanying CARC or RARC codes that explain the actual payment or denial reason — code 246 itself does not require correction
Confirm whether the claim line was paid as expected; if so, no action is typically needed for this code alone
If the line was not paid as expected, focus troubleshooting on the other adjustment codes listed, not on code 246
Document internally that this code is informational so staff don't mistakenly treat it as a denial requiring rework

Appeal / resubmit

Code 246 by itself is not appealable because it doesn't represent a payment denial or reduction. If the claim line shows an unexpected payment amount, review the other adjustment codes on the same line and address those directly; an appeal should target the substantive reason code, not this reporting-only code.

Frequently asked

Does CARC 246 mean my claim was denied?

No. It's a non-payable, informational code used for required reporting. The actual payment decision is reflected in other codes on the same remittance line.

Do I need to resubmit a claim when I see code 246?

Not based on this code alone. Check for any other CARC or RARC codes on the line that indicate a denial or adjustment, and act on those instead.

Why does my payer include a code that doesn't affect payment?

Payers are sometimes required to report specific data elements for regulatory, quality, or statistical tracking purposes, and code 246 is the mechanism used to flag that reporting without implying a payment change.

More free billing tools: all denial codes · denial lookup · Medicare fee calculator

This content is informational only and does not constitute billing or legal advice. Always verify current payer policies and official code definitions before taking action.