CO-282: Procedure/Revenue Code Does Not Match Type of Bill
Billing error — your procedure or revenue code does not match the bill type. Check the 835 for specifics, fix the mismatch, and resubmit.
What Does CO-282 Mean?
CO-282 means the billing error is the provider's responsibility. The procedure/revenue code does not align with the type of bill, and the provider must fix and resubmit. The patient cannot be billed for this denial — it is a coding issue that the provider must resolve.
CARC 282 indicates a technical billing error where the procedure or revenue code submitted on the claim is inconsistent with the type of bill (TOB). This is a structural mismatch — certain codes are only valid with specific bill types, and the payer's system flagged the inconsistency during claim processing.
Common examples include billing an outpatient procedure code on an inpatient bill type, using a revenue code that is not valid for the submitted bill type classification (inpatient, outpatient, SNF, home health, etc.), or selecting the wrong type of bill in the billing system altogether. These errors are typically data entry mistakes or billing system configuration issues rather than clinical documentation problems.
The 835 Healthcare Policy Identification Segment (loop 2110 Service Payment Information REF) often provides additional detail about which specific code triggered the inconsistency. This code is a straightforward billing correction — fix the mismatch and resubmit. Appeals are not appropriate because this is a correctable coding error.
Common Causes
| Cause | Frequency |
|---|---|
| Incorrect procedure or revenue code for the bill type The procedure code or revenue code used on the claim does not align with the type of bill submitted, creating a mismatch that the payer cannot process | Most Common |
| Wrong bill type selection The incorrect type of bill was selected in the billing system, causing the procedure and revenue codes to be inconsistent with the bill classification | Common |
| Coding guideline non-compliance The codes used on the claim are inappropriate for the type of bill per coding guidelines and payer requirements | Common |
| Technical or system errors System glitches or software compatibility problems caused the wrong code combinations to be submitted | Occasional |
| Insufficient staff training on bill types Billing personnel selected incorrect codes due to lack of training on the relationship between procedure/revenue codes and bill types | Occasional |
How to Resolve
- Review the 835 remittance Check the Healthcare Policy Identification Segment for the specific code causing the inconsistency.
- Identify the correct combination Determine whether the procedure/revenue code or the type of bill needs to change by consulting coding guidelines.
- Correct in your billing system Update the code or bill type to the correct value in your practice management system.
- Resubmit as corrected claim Submit the corrected claim — do not submit as a new claim.
CO-282 indicates a billing format error where the procedure/revenue code does not match the type of bill. Correct the code-bill type combination and resubmit the claim rather than filing an appeal.
Common RARC Pairings
The RARC code tells you exactly what triggered the CO-282:
| RARC | Description |
|---|---|
| M86 | Alert: Service denied because the procedure/revenue code is not consistent with the type of bill. Review the type of bill and ensure the procedure/revenue codes are appropriate for that bill classification → |
| N831 | Alert: Refer to the 835 Healthcare Policy Identification Segment for specific details on this adjustment. Check the 835 Segment for the specific policy that defines valid code-bill type combinations → |
How to Prevent CO-282
- Implement automated edits that flag procedure/revenue code and type of bill mismatches before claim submission
- Train billing staff on correct relationships between codes and bill types for institutional claims
- Conduct regular coding audits to catch systemic mismatch patterns
- Keep code-to-bill type reference tables current in your billing system
General Prevention
- Conduct regular billing audits and reviews to catch code-bill type mismatches before submission
- Provide comprehensive staff training on bill types and their corresponding procedure/revenue codes
- Implement automated systems that flag discrepancies between codes and bill types
- Maintain cross-departmental communication between billing and clinical teams
- Stay current with coding guidelines and regulations for each bill type
Also Filed As
The same CARC 282 may appear with different Group Codes:
Related Denial Codes
Sources
- https://www.mdclarity.com/denial-code/282
- https://resdac.org/sites/datadocumentation.resdac.org/files/Adjustment%20Reason%20Code%20Code%20Table%20(TAF%20Claims).txt
- https://x12.org/codes/claim-adjustment-reason-codes
- Codes maintained by X12. Visit x12.org for official definitions.