CO-167: The diagnosis is not covered by this plan

CO-167 denies the condition rather than the service, which makes it a harder denial than most. Medical necessity arguments do not reach it: the plan has excluded the diagnosis, so proving the treatment was appropriate concedes the point. The productive question is whether the encounter also addressed a covered condition that was documented but never coded, and whether the exclusion is genuinely in the plan document or was applied more broadly than it should have been.

What it means
The plan excludes the condition itself from coverage, so services treating it are not payable regardless of medical necessity.
Who pays the balance
Contractual unless valid advance notice was obtained; some exclusions transfer to the patient with proper notice.
Group code CO
Contractual Obligation - the provider absorbs the balance and cannot bill the patient

Why CO-167 happens

How to fix a CO-167 denial

  1. 1

    Read the exclusion in the plan document, not just the remark code

    Exclusions are written narrowly and applied broadly. Confirm the plan language actually covers this patient's specific condition before writing the balance off.

  2. 2

    Look for a covered diagnosis already in the documentation

    If the encounter also addressed a covered condition and that condition supports the service billed, adding it to a corrected claim can resolve the denial without any clinical change.

  3. 3

    Redirect to the benefit that does cover it

    Conditions excluded from a medical plan are often covered by a separate dental or vision benefit. That is a different payer and a different claim rather than an appeal.

  4. 4

    Establish patient responsibility properly for continuing care

    Where the exclusion is genuine and treatment continues, a signed advance notice before further services is what makes those balances collectible.

Preventing CO-167 denials

CO-167 frequently asked questions

What does denial code CO-167 mean?
CO-167 means the plan does not cover the diagnosis reported on the claim. The exclusion is on the condition itself, so services treating it are not payable no matter how well medical necessity is documented.
What is the difference between CO-167 and CO-11?
CO-11 means the diagnosis does not support the procedure - a linkage problem, often fixed by coding a condition already in the note. CO-167 means the diagnosis is excluded from the plan entirely, so the fix is either a different covered diagnosis, a different benefit, or advance notice to the patient.

Related denial codes

Last reviewed .

Denial code explanations are original plain-English summaries written for reference and are not the official X12 code descriptions. Payer handling of any code varies by contract - always verify against the remittance advice and your payer agreement before adjusting a claim.