CARC 242 Active

OA-242: Services Not Provided by Network/Primary Care Providers

TL;DR

The network issue was flagged during COB. Check each payer's network requirements.

Action
Review & Decide
Who Pays
Depends
Appeal
Yes
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-242 Mean?

With OA, the network issue was flagged during coordination of benefits. One payer's network requirements may differ from another's.

CARC 242 indicates that the service was rendered by a provider who is outside the patient's required network or is not the patient's designated primary care provider, and the patient's plan requires these services to come from network or PCP providers. This is common in HMO and gatekeeper plans where patients must use in-network providers and obtain services through or under the direction of their assigned primary care provider.

The denial means the plan does not cover services from out-of-network providers or non-PCP providers for this service type. The patient may need to receive the service from their designated network provider, or obtain a referral from their PCP.

Common Causes

Cause Frequency
Network status adjustment in COB In coordination of benefits, network status affects payment level from one of the payers Common

How to Resolve

  1. Check network status per payer Verify the provider's network participation with each payer.
  2. Submit to the appropriate payer Direct the claim to the payer with whom the provider is in-network.
Appeal Guide

Appeal with proof of network participation if network status was incorrectly applied.

How to Prevent OA-242

General Prevention

Also Filed As

The same CARC 242 may appear with different Group Codes:

Related Denial Codes

Sources

  1. https://x12.org/codes/claim-adjustment-reason-codes
  2. https://www.mdclarity.com/denial-code/242
  3. https://portal.ct.gov/-/media/ohs/health-it-advisory-council/apcd-advisory-group/data-submission-guide-workgroup/meeting-materials/6-30-22/carc-codes_final.pdf
  4. Codes maintained by X12. Visit x12.org for official definitions.