CARC 308 Active

PR-308: Contracted Funding Agreement Adjustment

TL;DR

Payment was adjusted per a contracted funding agreement between the provider and payer. Verify the adjustment matches your contract terms and dispute through the contract's resolution process if the amount is incorrect.

Action
Review & Decide
Who Pays
Patient
Appeal
No
Patient Impact
Direct Financial
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 PR-308 Mean?

CARC 308 indicates that the payment was adjusted based on a contracted funding agreement between the provider and the payer. This code covers a broad range of contractual payment arrangements including negotiated rate reductions, value-based payment model adjustments, capitation or bundled payment offsets, and risk-sharing arrangement modifications.

Unlike standard fee schedule adjustments, CARC 308 specifically references a "funding agreement" — a formal contractual arrangement that defines how payment is calculated. These agreements may involve alternative payment models where reimbursement is tied to quality outcomes, cost efficiency, or population health metrics rather than traditional fee-for-service rates.

The adjustment amount should align with the specific terms of your contracted funding agreement. If the adjustment does not match the contracted rates or methodology, dispute it through the contract's designated dispute resolution process rather than the standard claims appeal process.

How to Resolve

Verify the adjustment against your funding agreement terms and dispute through the contract process if incorrect.

  1. Review the contracted funding agreement Locate the relevant funding agreement and verify the adjustment aligns with the negotiated payment terms and methodology.
  2. Compare adjustment to contract terms Calculate the expected payment based on the contract's payment methodology and compare it to the actual adjustment amount.
  3. Contact provider relations for discrepancies If the adjustment does not match the contract, contact the payer's provider relations department for an explanation of the calculation.
  4. Request adjustment calculation details Ask the payer for a detailed breakdown of how the funding agreement adjustment was calculated.
  5. Dispute through contract process If the adjustment is incorrect, file a formal dispute through the contract's dispute resolution process with your agreement, payment terms, and calculation showing the discrepancy.
Do Not Appeal This Code

Contracted Funding Agreement Adjustment reflects a fee-schedule or contracted-rate reduction — the difference between billed charges and the negotiated allowed amount. The reduction is the contracted rate itself, not a denial of coverage, so an appeal isn't the right action. Confirm the contracted rate was applied correctly and accept the adjustment.

Also Filed As

The same CARC 308 may appear with different Group Codes:

CO-308 OA-308

Related Denial Codes

PR-45 — Charge Exceeds Fee Schedule/Maximum Allowable PR-139 — Contracted Funding Agreement — Subscriber Employed by Provider PR-222 — Exceeds Contracted Maximum Hours/Days/Units PR-260 — Processed Under Medicaid ACA Enhanced Fee Schedule PR-P12 — Workers' Compensation Jurisdictional Fee Schedule Adjustment

Sources

  1. https://x12.org/codes/claim-adjustment-reason-codes
  2. https://www.cms.gov/medicare/payment/prospective-payment-systems
  3. Codes maintained by X12. Visit x12.org for official definitions.