144Denial Code (CARC)Active
CO 144 Denial Code - Understanding Incentive Adjustments
Code 144 signifies an incentive adjustment, typically applied when a preferred product or service is used. This means the payer adjusted the claim due to an incentive arrangement, often resulting in a reduced payment to the provider.
Who Pays: Group Code Liability
With group code CO, the adjustment under code 144 is a contractual write-off, meaning the provider absorbs the cost and cannot bill the patient. If group code PR applies, the patient may be billed for the adjusted amount.
Why Claims Get Code 144
- Use of a preferred brand or service that qualifies for an incentive adjustment.
- The payer has an agreement to promote specific products or services, resulting in payment changes.
- An incentive program impacting reimbursement rates was applied.
- Incorrect application of an incentive by the payer.
How to Fix & Resubmit
- Review the claim to confirm the use of a preferred product or service that qualifies for the incentive adjustment.
- Check the payer's policy to ensure the incentive was applied correctly.
- If the adjustment seems incorrect, contact the payer for clarification on the incentive terms.
- Submit a corrected claim if the wrong product/service was billed and it affects the incentive.
- If needed, appeal the decision with documentation supporting the use of the preferred product/service.
Corrected Claim or Appeal?
Submit a corrected claim if an incorrect product/service was billed. A formal appeal is necessary if you believe the incentive was misapplied despite correct usage.
Preventing Future 144 Denials
- Verify payer incentive programs and preferred products/services before billing.
- Regularly update billing software with current payer incentive information.
- Train staff on identifying and applying incentive adjustments accurately.
- Conduct periodic audits of claims involving incentives to ensure compliance.