This denial means that the claim was denied because the charges are covered under a capitation agreement or managed care plan - in this case, the Medicare Advantage plan.
Capitation is a payment arrangement for health care service providers. It pays a set amount for each enrolled person assigned to them, per period of time, whether or not that person seeks care.
The CO 24 denial code is used to indicate that the claim made has been denied due to the patient's insurance coverage under a capitation agreement or a managed care plan.
Denial code 256 is when a healthcare provider's service is not covered by a managed care contract, resulting in non-payment.
What is Denial Code 31. Denial code 31 means that the patient cannot be identified as our insured. This typically occurs when the insurance information provided by the patient does not match the information on file with the healthcare provider or insurance company.
Charges are covered under a capitation agreement: In some cases, healthcare providers have entered into capitation agreements with managed care plans. Under these agreements, the provider receives a fixed payment per patient per month, regardless of the services rendered.
Patient Responsibility – Key “31” in the code box of this field to identify the value code as patient liability. Key the amount of patient minimal liability due in the Amt.