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.
Also appears as PR-167. The group code changes who is responsible, not the reason.
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.
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
How to work a CO-167 denial.
The order matters: confirm the facts before deciding between a corrected claim, a reconsideration, or an adjustment.
- 1Check the payer's coverage policy or the Medicare LCD for covered diagnoses.
- 2Review the record for a more specific or additional documented diagnosis.
- 3If documentation supports a covered diagnosis, submit a corrected claim.
- 4If not, determine whether the patient can be billed under your contract and any waiver or ABN on file.
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 →
Questions about CO-167.
Denials that often travel with this one.
CO-11: Diagnosis Inconsistent With Procedure
CO-11 means the diagnosis on the claim does not support the procedure billed. What triggers it, how to review pointers and documentation, and how to fix it.
Read about CO-11 →CO-50: Not Deemed Medically Necessary
CO-50 means the payer decided the service was not medically necessary. How to review policy and documentation, build an appeal, and handle ABNs for Medicare.
Read about CO-50 →CO-96: Non-Covered Charge
CO-96 means the payer considers the service a non-covered charge. How to read the RARC, verify benefits, and decide whether to appeal or bill the patient.
Read about CO-96 →Add a Dedicated Denial Specialist
RCM Staff places trained denial management specialists inside your EHR and clearinghouse to work the queue, correct and appeal claims, and track root causes by payer.
