CARC 225CO · Contractual Obligation
This line represents a penalty or interest payment made by the payer, not a payment for a medical service.
- Common causes
- Regulatory requirements sometimes require payers to pay interest on late-processed claims, shown as a separate adjustment line.
- Suggested fix
- No action is typically needed; this is informational, reflecting the payer's own penalty or interest payment.
Related Contractual Obligation codes
107This claim depends on another related claim or service being referenced, but that link wasn't provided.11The diagnosis code doesn't support medical necessity for the procedure billed, based on the payer's coverage edits.13The claim shows a date of service after the patient's recorded date of death.146The diagnosis code billed wasn't a valid, active code as of the date of service.150The documentation submitted doesn't justify the complexity or level of the service billed, commonly seen with evaluation and management visit levels.16The claim is missing required information or contains a billing error that prevented the payer from processing it.170This payer doesn't reimburse this specific provider type for this service.171This payer doesn't cover this service when it's billed by this provider type in this particular facility setting.
Frequently asked questions
What does CARC 225 mean?
This line represents a penalty or interest payment made by the payer, not a payment for a medical service.
How do I resolve CARC 225?
No action is typically needed; this is informational, reflecting the payer's own penalty or interest payment.
Why does CARC 225 happen?
Regulatory requirements sometimes require payers to pay interest on late-processed claims, shown as a separate adjustment line.
CARC codes maintained by X12 (x12.org). Descriptions on this site are original reference interpretations. Always verify codes with authoritative sources before making billing decisions.