CARC 111 Active

OA-111: Not Covered Unless Provider Accepts Assignment

TL;DR

Adjustment in a COB or secondary payer context. Review the coordination of benefits details to determine the responsible party.

Action
Review & Decide
Who Pays
Depends
Appeal
No
Patient Impact
Indirect
Disclaimer
This content is for informational purposes only and does not constitute professional billing advice. Always verify information against your payer contracts and current coding guidelines. Consult a certified billing specialist for specific claim issues.

What Does OA-111 Mean?

When paired with Group Code OA, CARC 111 (Not Covered Unless Provider Accepts Assignment) is processed as an adjustment outside the standard CO/PR classifications. This typically occurs in secondary payer or coordination of benefits scenarios. Review the remittance details and the COB arrangement to determine financial responsibility and appropriate next steps.

CARC 111 indicates not covered unless provider accepts assignment. The payer determined that the service or a portion of it does not meet coverage criteria under the patient's current plan benefits or the applicable coverage rules.

Common scenarios that trigger this adjustment include: certain services (such as clinical lab, Medicare Part B drugs, and DMEPOS) require mandatory assignment. The provider billed without accepting assignment for a service that requires it.; The provider is non-participating with Medicare but billed a service that requires assignment regardless of participation status; The state Medicaid program requires assignment acceptance for the billed service, and the provider did not accept assignment. The group code paired with CARC 111 determines who bears the financial responsibility — CO places it on the provider as a contractual obligation, PR shifts it to the patient, OA indicates a coordination of benefits or other payer adjustment.

How to Resolve

  1. Review the coordination of benefits Examine the OA-111 adjustment to understand how it fits within the primary/secondary payer relationship or other multi-payer context.
  2. Verify primary payer adjudication Review the primary payer's EOB to understand the basis for the secondary payer's OA adjustment.
  3. Determine the responsible party Based on the COB review, identify whether the adjustment should be absorbed, billed to another payer, or if additional documentation is needed.
  4. Appeal or resubmit if needed If the OA adjustment appears incorrect based on the COB arrangement, submit an appeal or corrected claim with the appropriate documentation.
  5. Follow up Monitor the claim status and take additional action as needed based on the COB determination.
Do Not Appeal This Code

This service requires mandatory assignment. Accept assignment and resubmit the claim rather than filing an appeal.

How to Prevent OA-111

Also Filed As

The same CARC 111 may appear with different Group Codes:

Related Denial Codes

Sources

  1. https://www.cms.gov/medicare/enrollment-renewal/providers-suppliers/accepting-assignment
  2. https://www.aapc.com/resources/claim-adjustment-reason-code-carc
  3. https://www.mdclarity.com/denial-code/111
  4. Codes maintained by X12. Visit x12.org for official definitions.