What is 97 denial?

Asked by: Mariano Mraz  |  Last update: July 27, 2026
Score: 4.4/5 (49 votes)

A CO 97 denial in medical billing means the service, procedure, or supply is not separately payable because it is considered bundled into another, more comprehensive service already paid. It is a Contractual Obligation (CO), meaning the provider cannot bill the patient for the denied amount.

What does denial code 97 mean?

Denial Code CO-97 is used in medical billing to indicate that a claim has been denied because the billed service is considered part of another service that has already been processed.

What is the use of 97 modifier?

When a service or procedure that may be either habilitative or rehabilitative in nature is provided for rehabilitative purposes, the physician or other qualified health care professional may add modifier 97 to the service or procedure code to indicate that the service or procedure provided was a rehabilitative service.

When a denial is received for CO 97 this typically indicates that the procedure is bundled or considered incidental.?

Denial Code CO-97 indicates that the service or procedure submitted is not separately reimbursable because it is bundled into the payment for another billed service. This is a Contractual Obligation (CO) denial, meaning the provider cannot bill the patient for the denied service.

What does CO97 mean on an EOB?

Denial Code CO 97 – Procedure or Service Isn't Paid for Separately. Denial Code CO 97 occurs because the benefit for the service or procedure is included in the allowance or payment for another procedure or service that has already been adjudicated. Basically, the procedure or service is not paid for separately.

What is Denial Code CO 97?

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What is the 97 modifier for Medicare?

Claims for Rehabilitative Services should be billed with the appropriate CPT/HCPCS Code Modifier 97 to identify rehabilitative services. Claims for Habilitative and Rehabilitative Services should not be billed with the combination 96 and 97 modifiers on the same claim line.

What are the most common denial codes?

The most common medical billing denial codes involve missing or incorrect information (CO-16), duplicate claims (CO-18), mismatched diagnosis/procedure codes (CO-11, CO-4), lack of authorization (CO-15, CO-197), non-covered services (CO-97, PR-96), and timely filing issues (CO-29, CO-27). These codes, often starting with 'CO' (Contractual Obligation) or 'PR' (Patient Responsibility), highlight errors in data, authorization, coding, or submission, requiring providers to correct and resubmit claims.
 

What are the four levels of denial?

To summarize, denial of fact says that the offense in question never happened, denial of impact trivializes the consequences of the inappropriate behavior, denial of responsibility attempts to justify or excuse the behavior, and denial of hope shows that the person is unwilling to take active steps to make things ...

What are the top 5 denials in medical billing?

Top 10 Denials in Medical Billing

  • Missing or Incomplete Patient Information (CO 16) ...
  • Incorrect Patient Eligibility or Coverage (CO 109) ...
  • Duplicate Claims (CO 18) ...
  • Lack of Prior Authorization (CO 197) ...
  • Invalid or Unsupported Diagnosis Code (CO 167) ...
  • Invalid or Unsupported Procedure Code (CO 181) ...
  • Non-Covered Services (PR 96)

What is the difference between 95 and 97 guidelines?

An extended HPI documents four or more elements of the present HPI or associated comorbidities, under the 1995 E/M guidelines. If using the 1997 documentation guidelines, the provider should describe at least four elements of the present HPI or the status of at least three chronic or inactive conditions.

What is the 2 day rule for Medicare?

Medicare policy is that for a patient to be considered inpatient, then the stay should exceed two midnights. There are few exceptions to this rule. Death and inpatient claims, where a procedure is performed that is on the inpatient only list, being two.

What does OA mean on an EOB?

OA (Other Adjustments) is used when CO (Contractual Obligation) nor PR (Patient Responsibility apply. This can be used when the claim is paid in full and there is no contractual obligation or patient responsibility on the claim.

What is the denial code for diagnosis not covered?

Denial code 167 means the diagnosis is not covered.

What is the deadliest form of denial?

“Delay is the deadliest form of denial,” said historian C. Northcote Parkinson.

What are the 5 stages of denial?

The five stages – denial, anger, bargaining, depression and acceptance – are often talked about as if they happen in order, moving from one stage to the other. You might hear people say things like 'Oh I've moved on from denial and now I think I'm entering the angry stage'.

What is denial code 97?

Denial code 97 means the payment for this service is already included in another service that has been processed.

What is a 96 denial code?

Denial code 96 is for non-covered charges. It means that there is missing information in the claim, such as a remark code.

When a denial is received for CO 97 this typically indicates that the procedure is bundled or considered incidental, true or false?

Bundling Denial Code (CO-97)

That's a bundling denial code. These denial codes mean the payer refuses to pay for a code because it was part of another service. CO-97: “The benefit for this service is included in the payment for another service you've already billed.”

What is the 96 or 97 modifier for Humana?

Modifier 96 identifies habilitative services; modifier 97 identifies rehabilitative services. EHB are defined based on benchmark plans chosen by each state.