Last Modified: 3/6/2014 Location: FL, PR, USVI Business: Part B
Denial reason code CO24 FAQ
Q: We are receiving a denial with claim adjustment reason code (CARC) CO24. What steps can we take to avoid this denial code?
Charges are covered under a capitation agreement/managed care plan.
A: You are receiving this reason code due to the beneficiary being enrolled in a Medicare Advantage (MA) plan or covered under a capitation agreement.
Medicare Advantage (MA):
• If a Medicare beneficiary enrolls into a Medicare Advantage plan, that health plan will then replace the beneficiary’s traditional Medicare plan.
• Medicare claims must be submitted to the MA plan.
• If a claim is submitted to Medicare it will be returned as an unprocessable claim, and the remittance advice (RA) will indicate this claim adjustment reason code CO24.
• Obtain eligibility and benefit information prior to rendering services to patients.
• Ask patients if they have recently enrolled in any new health insurance plans.
• Request to see a copy of all of their health insurance cards.
• Always remember to check beneficiary eligibility prior to submitting claims to Medicare.
• Click here for ways to verify the beneficiary's eligibility prior to submitting claims to First Coast.
• If the beneficiary's record with CMS is updated to reflect they were not enrolled in an MA plan on the date(s) of service in question, resubmit the claim to First Coast Service Options Inc. (First Coast).
End-stage renal disease (ESRD) capitation agreement:
• Prior to seeing a patient for ESRD related dialysis, ensure they are not covered under a capitation agreement with another provider. If they are, contact the capitation provider before rendering the service.
• ESRD-related capitation agreements -- If the service(s) should be considered outside of the capitation agreement, please follow the ESRD claim guidelines and correct the claim with the appropriate modifiers. Resubmit the corrected claim for payment.
Source: CMS’ Internet-only Manual (IOM), Publication 100-09, Chapter 6, Section 50.1
Please use your browser's back button to return to the referring page.