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CARC 167 · Medical necessity

CO-167 Denial Code: Diagnosis Not Covered

Coverage policies often list the diagnoses that justify a service. CARC 167 means the diagnosis on the claim is not among them, or is specifically excluded. It is closely related to CO-11 and CO-50 and is often fixed by coding to the specificity the record already supports.

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Also appears as PR-167. The group code changes who is responsible, not the reason.

What CO-167 means

CO-167 means the payer does not cover the diagnosis billed for this service. Check the coverage policy for covered diagnoses, then review whether the documentation supports a more specific covered code. Correct the claim if it does, or determine patient liability if it does not.

Root Causes

Common causes of CO-167.

  • Nonspecific diagnosis code where the policy requires a more specific one
  • Diagnosis is excluded from coverage for that service
  • Screening service billed with a diagnosis the payer does not recognize for screening
  • Wrong diagnosis linked to the line
Workflow

How to work a CO-167 denial.

The order matters: confirm the facts before deciding between a corrected claim, a reconsideration, or an adjustment.

  1. 1Check the payer's coverage policy or the Medicare LCD for covered diagnoses.
  2. 2Review the record for a more specific or additional documented diagnosis.
  3. 3If documentation supports a covered diagnosis, submit a corrected claim.
  4. 4If not, determine whether the patient can be billed under your contract and any waiver or ABN on file.
Prevention

How to keep CO-167 from coming back.

  • Scrubber edits that check diagnosis coverage against policy
  • Provider education on documentation specificity

Fixing this at the source usually sits with medical coders →

FAQ

Questions about CO-167.

How is CO-167 different from CO-11?
CO-11 says the diagnosis and procedure are inconsistent. CO-167 says the diagnosis is not covered. In practice, both are fixed by reviewing policy and documentation.
Is a CO-167 denial appealable?
Yes, if the documentation supports a covered diagnosis or the payer misapplied its policy. Otherwise it is usually better to correct the claim.
Related Codes

Denials that often travel with this one.

Browse all denial codes →

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About the author
Kevin Jamito
Founder, RCM Staff™. CPC, CPB, CPPM, CRCR, CHBME.

Kevin Jamito has 18+ years of U.S. healthcare revenue cycle management experience across billing, coding, practice management, and offshore RCM operations. He founded RCM Staff to give U.S. healthcare teams dedicated Philippines-based specialists who work inside their existing systems.