How do I resolve a CO-274 denial?

Review the full denial on the 835 ERA for CARC 274: "Fee/Service not payable per patient Care Coordination arrangement." Pull the original claim and all supporting documentation for the date of service. See full resolution steps at tryarceum.com.

Can I appeal a CO-274 denial?

CO-274 denials are generally not appealable. This is a contractual arrangement denial based on the patient's enrollment status in a care coordination program, not a medical necessity or coding issue.

CARC Code

274

🟡 Soft Denial

Care Coordination Arrangement Non-Payable

The service billed is not covered or payable because the patient is enrolled in a care coordination program that has specific payment rules. Under this arrangement, certain services are bundled, prepaid, or handled differently than standard fee-for-service billing.

contractual

Resolution: 85%Easy difficulty3-7 days avg

How to resolve this denial

Which payer denied this claim?

Review and resolve CARC 274: Fee/Service not payable per patient Care Coordination arrangement.

1
Review the full denial on the 835 ERA for CARC 274: "Fee/Service not payable per patient Care Coordination arrangement."
2
Pull the original claim and all supporting documentation for the date of service.
3
Identify the specific data element, policy requirement, or documentation gap that triggered this adjustment.
4
Correct the identified issue — update claim data, gather missing documentation, or verify coverage details.
5
Resubmit as a corrected claim (frequency type 7) or file a written appeal with supporting documentation.
6
Follow up with the payer within 10-15 business days to confirm adjudication.

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▶✓ Pre-action checklist — verify before contacting the payer

Review the full remittance advice (ERA/EOB) for additional RARC codes that explain the denial.
Verify the claim was submitted with correct patient eligibility and benefit information.
Check if this denial applies to a specific line item or the entire claim.

▶More about CO-274 — stats, related codes, appeal template

85%

Recovery Rate

3-7 days

Avg. Resolution

Easy

Difficulty

Rare

Frequency

Payer-Specific Notes

How major payers handle CARC 274 by specialty.

General

Confirm payer-specific policy for CARC 274 and submit corrected claim or appeal as appropriate.

Appeal Letter Template

Generic appeal template for CARC 274 denials.

Dear [Payer Name] Appeals Department, We are writing to appeal the denial of claim [CLAIM #] for patient [PATIENT NAME] (Member ID: [ID]) for services rendered on [DATE OF SERVICE]. The claim was denied with CARC 274: "Fee/Service not payable per patient Care Coordination arrangement." We believe this denial is in error for the following reasons: [INSERT CLINICAL/ADMINISTRATIVE JUSTIFICATION] We respectfully request reconsideration and payment of this claim. Sincerely, [Provider Name / Billing Contact]

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