CO-122 Denial Code Explained

CO-122 is a medical billing denial code that indicates the payer adjusted payment based on a psychiatric reduction or limitation policy. This denial commonly occurs when reimbursement is reduced according to payer-specific behavioral health payment rules.

What Does CO-122 Mean?

The CO-122 denial code means payment was adjusted due to psychiatric or behavioral health reimbursement limitations.

This denial is often related to payer policies governing mental health services and reimbursement calculations.

Common Reasons for CO-122

• Psychiatric reduction policy applied

• Behavioral health reimbursement limitation

• Payer-specific payment adjustment

• Mental health coverage restrictions

• Contractual reimbursement rules

• Benefit plan limitations

How To Fix CO-122

Review the explanation of benefits and verify the payer policy responsible for the adjustment. Confirm that the billed service, diagnosis, and reimbursement amount comply with the payer's behavioral health guidelines.

If the adjustment appears incorrect, contact the payer and request a review.

Frequently Asked Questions

What does CO-122 mean?

CO-122 means payment was adjusted according to a psychiatric or behavioral health reimbursement policy.

Can CO-122 be appealed?

Yes. Providers may appeal if the adjustment was applied incorrectly.

Is CO-122 related to mental health services?

Yes. This denial is commonly associated with psychiatric and behavioral health claims.

Does CO-122 mean the claim was denied?

Not always. The payer may reduce payment rather than deny the claim entirely.

What should providers review first?

Review the payer's behavioral health reimbursement policies and explanation of benefits.

Related Denial Codes

You may also encounter:

• CO-45 — Charge exceeds payer fee schedule

• CO-50 — Service not considered medically necessary

• CO-96 — Non-covered charge

• CO-167 — Diagnosis not covered

Quick Summary

CO-122 indicates payment was adjusted according to psychiatric or behavioral health reimbursement policies. Most adjustments are related to payer-specific coverage and payment rules.