OA-246: Non-Payable Code for Required Reporting Only

What Does OA-246 Mean?

When paired with Group Code OA, the non-payable reporting code is processed as an informational adjustment. This typically occurs in encounter reporting for managed care or capitated arrangements where the code is tracked for data purposes.

CARC 246 indicates that the line item on your claim was submitted using a non-payable code designated exclusively for required reporting purposes. This is not a denial of a service you expected to be paid — it is a confirmation that the code was processed exactly as intended: for data collection, not reimbursement.

These reporting-only codes appear in several contexts. In managed care or capitated arrangements, encounter data is reported for tracking purposes even though payment is not made on a per-service basis. In quality measurement programs, certain codes are submitted to satisfy statistical tracking or regulatory reporting requirements. In bundled payment arrangements, individual service codes may be reported for transparency while the payment is made through a separate mechanism.

If you are seeing CARC 246 on a line item you expected to generate revenue, the issue is likely a misunderstanding of the code's purpose or a billing configuration error where a reporting-only code was used instead of a payable service code.

Common Causes

How to Resolve

1. No action required This is an expected informational adjustment for reporting-only codes. No follow-up is needed.

How to Prevent OA-246

• Maintain awareness of which codes are designated for reporting only across all payer contracts

General Prevention

• Maintain awareness of which codes are for reporting only across all payers

Also Filed As

The same CARC 246 may appear with different Group Codes:

Related Denial Codes