OA-235: Sales Tax

What Does OA-235 Mean?

With OA, the sales tax adjustment appeared during coordination of benefits.

CARC 235 indicates a sales tax component on the claim. Some states impose sales tax on medical products, equipment, or supplies, and this code reflects the tax adjustment in the claim processing. The payer may be adding, adjusting, or denying the sales tax component depending on the jurisdiction and the specific product billed.

Sales tax rules vary significantly by state — some states exempt medical devices and prescription drugs from sales tax, while others impose tax on DME, medical supplies, or over-the-counter products. The treatment of sales tax on insurance claims depends on both state law and the payer's policy.

Common Causes

How to Resolve

1. Verify the tax Confirm the sales tax is correct.
2. Accept or contest Accept if correct, or contest if misapplied.

How to Prevent OA-235

• Ensure consistent sales tax treatment across all payers

General Prevention

• Ensure accurate tax handling across all payers

Also Filed As

The same CARC 235 may appear with different Group Codes:

Related Denial Codes