ModerateContractual Obligation (CO)Eligibility & Coverage

CO-242: Services not provided by network/primary care providers

The service was provided by a non-network or non-primary care provider. The patient's plan requires services to be rendered by in-network providers or requires a referral from a primary care provider.

Common Causes

  • Provider is out-of-network for the patient's plan
  • Patient has an HMO plan that requires a PCP referral which was not obtained
  • Provider's network status changed and patient records were not updated
  • Service performed at an out-of-network facility

How to Resolve CO-242

  1. 1Verify the provider's network status with the specific plan
  2. 2If in-network, appeal with proof of network participation
  3. 3If a referral is needed, obtain one and resubmit
  4. 4If out-of-network, check if the patient has out-of-network benefits
  5. 5Request a network exception or gap exception if no in-network provider is available

How to Prevent CO-242 Denials

  • Verify network status for the patient's specific plan, not just the payer
  • Check referral requirements for HMO and POS plans during scheduling
  • Monitor provider credentialing and network participation status

Related Denial Codes

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