Reference

CARC Denial Codes

Claim Adjustment Reason Codes explain why a claim was denied. Use this guide to understand each code, the best appeal strategy, and expected success rates for behavioral health.

9 soft denials
8 hard denials
54% avg overturn
CO-4SoftCoding
overturn85%

Procedure code inconsistent with modifier used or required modifier missing

Strategy
Correct & resubmit
Notes
Check modifier requirements. Common: missing -25 on E/M with procedure, wrong laterality modifier.
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CO-11SoftCoding
overturn80%

Diagnosis inconsistent with the procedure

Strategy
Correct & resubmit
Notes
ICD-10 does not support the CPT billed. Review medical necessity linkage. May need more specific diagnosis.
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CO-16SoftCoding
overturn90%

Claim lacks information or has submission/billing error(s)

Strategy
Correct & resubmit
Notes
Most common soft denial. Check RARC for the specific missing field or formatting issue.
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CO-18SoftDuplicate
overturn70%

Exact duplicate claim/service

Strategy
Verify & resubmit
Notes
Verify not a true duplicate. If distinct service, resubmit with corrected frequency code (7 or 8).
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CO-22SoftCOB
overturn65%

Care may be covered by another payer per coordination of benefits

Strategy
Verify & resubmit
Notes
COB issue. Verify primary/secondary insurance order. Include EOB from primary when billing secondary.
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CO-27HardEligibility
overturn15%

Expenses incurred after coverage terminated

Strategy
Write off
Notes
Check for retroactive coverage or COBRA. Low overturn unless DOS was near coverage end date.
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CO-29HardFiling
overturn10%

Time limit for filing has expired

Strategy
Write off
Notes
Only appeal with proof of timely original submission — clearinghouse receipt or tracking number.
View full appeal guide →
CO-50HardNecessity
overturn55%

Not deemed medically necessary by the payer

Strategy
Formal appeal
Notes
Requires clinical documentation. Reference payer policy, AMA guidelines, peer-reviewed literature.
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CO-96HardNon-covered
overturn20%

Non-covered charge(s)

Strategy
Write off
Notes
Service excluded from plan. Check RARC for specifics. Low success unless plan interpretation is wrong.
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CO-97SoftCoding
overturn60%

Benefit included in payment for another service

Strategy
Correct & resubmit
Notes
Bundling issue. Check CCI edits. May need modifier -59 or X modifiers to unbundle.
View full appeal guide →
CO-109SoftEligibility
overturn70%

Claim not covered by this payer/contractor

Strategy
Verify & resubmit
Notes
Wrong payer. Verify correct insurance and resubmit to appropriate payer.
View full appeal guide →
CO-119HardLimit
overturn30%

Benefit maximum for this time period has been reached

Strategy
Formal appeal
Notes
Visit/dollar limit exceeded. Appeal if medically necessary — Mental Health Parity Act may apply.
View full appeal guide →
CO-151HardNecessity
overturn50%

Information submitted does not support this many services

Strategy
Formal appeal
Notes
Frequency dispute. Appeal with clinical justification for the number of units or visits.
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CO-197HardAuth
overturn40%

Precertification/authorization absent

Strategy
Retroactive auth
Notes
Attempt retroactive authorization. Otherwise appeal with proof of existing auth or that service type doesn't require it.
View full appeal guide →
CO-204HardNon-covered
overturn15%

Service not covered under patient's current benefit plan

Strategy
Write off
Notes
Benefit exclusion. Review plan documents. Low overturn unless parity laws apply.
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CO-236SoftCoding
overturn75%

Procedure/modifier combination not compatible with another already adjudicated

Strategy
Correct & resubmit
Notes
Modifier conflict. Review NCCI edits and ensure proper modifier application.
View full appeal guide →
CO-252SoftCoding
overturn85%

Attachment/documentation required to adjudicate this claim

Strategy
Correct & resubmit
Notes
Missing documentation. Submit requested records. High overturn when docs are provided.
View full appeal guide →

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