CARC 266CO · Contractual Obligation
This adjustment accounts for the extra cost of compounding a customized medication.
- Common causes
- Compounded medications involve preparation costs beyond a standard dispensed drug, billed and adjusted separately.
- Suggested fix
- Confirm the payer's policy on reimbursing compound preparation fees and that documentation supports the compounding was necessary.
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 266 mean?
This adjustment accounts for the extra cost of compounding a customized medication.
How do I resolve CARC 266?
Confirm the payer's policy on reimbursing compound preparation fees and that documentation supports the compounding was necessary.
Why does CARC 266 happen?
Compounded medications involve preparation costs beyond a standard dispensed drug, billed and adjusted separately.
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.