211Denial Code (CARC)Active
Effective 07/09/2007

CO 211 Denial Code - Fix & Prevent NDC Rebate Issues

Code 211 indicates that the National Drug Codes (NDC) submitted on the claim are not eligible for rebate and therefore, are not covered by the payer. This means the payer will not reimburse for these specific drug codes as they do not meet the rebate eligibility criteria.

Who Pays: Group Code Liability

For code 211, the group code CO typically applies because the drugs are not covered due to rebate eligibility. This makes it a contractual write-off, and the patient cannot be billed for these charges.

Why Claims Get Code 211

  • The NDC submitted is not on the payer's rebate-eligible list.
  • The provider used an outdated or incorrect NDC for the drug.
  • The claim was submitted with an NDC for a drug that is generally non-reimbursable by the payer.
  • The payer's system has not been updated with the latest rebate eligibility list.
  • The claim included compounded drugs that have NDCs not eligible for rebate.

How to Fix & Resubmit

  1. Verify the NDC used on the claim against the payer's rebate eligibility list.
  2. Check if the NDC was entered correctly and matches the prescribed drug.
  3. Contact the payer to confirm if there have been recent changes to their rebate eligibility list.
  4. If the NDC is incorrect, correct it and resubmit the claim with the accurate code.
  5. If the drug is genuinely non-reimbursable, write off the charge per contractual obligations.

Corrected Claim or Appeal?

Submit a corrected claim if an incorrect NDC was used. If the drug is not covered due to rebate issues, an appeal is unlikely to succeed, and the adjustment should be accepted as contractual.

Preventing Future 211 Denials

  • Always verify NDC eligibility before claim submission using the payer's latest rebate list.
  • Ensure the billing software is updated regularly with current rebate eligibility data.
  • Train staff to double-check NDCs against the drug packaging or prescribing information.
  • Establish a process for regular updates from payers regarding changes to rebate eligibility.