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.
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.
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.
Most capitation payment plans for primary care services include basic areas of healthcare: Preventive, diagnostic, and treatment services. Injections, immunizations, and medications administered in the office. Outpatient laboratory tests that are done in the office or at a designated laboratory.
What is Denial Code 284. Denial code 284 is used when the precertification, authorization, notification, or pre-treatment number provided by the healthcare provider may be valid, but it does not apply to the specific services that were billed.
Denial code 167 means the diagnosis is not covered. Check the 835 Healthcare Policy Identification Segment for more information.
Denial code 177: Patient has not met the required eligibility requirements.
Denial code 256 is when a healthcare provider's service is not covered by a managed care contract, resulting in non-payment.