306Denial Code (CARC)Active
CO 306 Denial Code - Fix Inconsistent Bill Type
Code 306 indicates that the type of bill submitted does not match the patient's status. This discrepancy between the billing form and the patient's actual situation triggers this denial.
Who Pays: Group Code Liability
For code 306, the group code is typically CO, meaning it's a contractual obligation and the amount should be written off by the provider. The patient is not responsible for this adjustment.
Why Claims Get Code 306
- The bill type submitted doesn't align with the patient's discharge status.
- The patient is marked as inpatient, but the bill type indicates outpatient service.
- The patient status indicates discharge to a skilled nursing facility, but the bill type suggests home discharge.
- A clerical error in entering the patient's status on the claim form.
- The wrong type of bill was selected during claim creation.
How to Fix & Resubmit
- Verify the patient's actual status at the time of the service against what was billed.
- Check the type of bill on the claim to ensure it aligns with the patient's status.
- Correct any discrepancies between the patient status and the type of bill if found.
- Submit a corrected claim with the accurate type of bill reflecting the patient's status.
- Contact the payer for clarification if the denial persists after corrections.
Corrected Claim or Appeal?
In cases of code 306, submitting a corrected claim is usually appropriate once the type of bill is corrected to match the patient status. An appeal is rarely needed unless a contract issue arises.
Preventing Future 306 Denials
- Ensure accurate entry of patient status in the billing system before claim submission.
- Cross-check the type of bill selected on claims with the patient's actual discharge status.
- Implement a review process for claims to catch mismatches between patient status and bill type.
- Train staff on the importance of matching bill types to patient statuses accurately.