CARC Code
A2
Contractual adjustment.
How to resolve this denial
Review and resolve CARC A2: Contractual adjustment.
- 1
Review the full denial on the 835 ERA for CARC A2: "Contractual adjustment."
- 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.
▶✓ 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-A2 — 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 A2 by specialty.
General
Confirm payer-specific policy for CARC A2 and submit corrected claim or appeal as appropriate.
Appeal Letter Template
Generic appeal template for CARC A2 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 A2: "Contractual adjustment." 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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