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CO-143 Denial Code: Portion of Payment Deferred

CO-143 means a portion of the payment was deferred. The payer approved the amount but is paying part of it later, for example under a periodic payment schedule or a contractual arrangement, rather than denying it.

Quick facts

Code
CO-143 (CARC 143)
Status
Active In use since February 28, 2001.
Code set
Claim Adjustment Reason Codes (CARC)
Group codes
  • CO (Contractual Obligation): The deferred amount is owed by the payer at a later date under the arrangement. It is not billable to the patient and should not be written off.
  • OA (Other Adjustment): Sometimes used because the deferral is a timing matter that assigns no liability to the provider or patient.
Official description
Portion of payment deferred.
X12 Claim Adjustment Reason Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What CO-143 means

CARC 143 says portion of payment deferred. The payer processed the claim and recognized an amount as payable, but chose to pay only part of it now. The rest is deferred to a later payment, usually because of a payment arrangement such as periodic payments, installment schedules, or other contractual timing rules.

The code is informational, not a denial. The deferred portion is still expected. The main risk is losing track of it if it is posted as a write-off.

Example: under a contractual payment schedule, a payer pays a large claim in installments. The first remittance shows the initial payment and CO-143 for the remainder. Later remittances report the rest of the payment.

Common causes

  • A periodic or installment payment arrangement in your contract.
  • Payer cash-flow or budget rules, such as a state program deferring payments to a later cycle.
  • Large claims paid in stages under the payer’s policy.
  • Settlement arrangements that schedule payments over time.

How to fix it

  1. Ask the payer why the amount was deferred and when it will be paid.
  2. Post the deferred portion to a receivable, not to a contractual adjustment or bad debt.
  3. Track the claim until the deferred amount is paid, and match later payments to it.
  4. Follow up if the payment date passes without payment.
  5. Review your contract if you did not expect deferrals. If the payer is deferring without a basis, escalate with provider relations.

How to prevent problems with CO-143

  • Document any payment schedules and deferral terms in your contract summaries.
  • Create a dedicated adjustment or transaction code for deferrals in your billing system.
  • Report outstanding deferred amounts in accounts receivable aging so they are not forgotten.
  • Make sure later remittances that release deferred money are matched to the original claim. When a deferred payment arrives on a different ERA, often with its own adjustment codes, it is easy to post it as unapplied cash or as an overpayment by mistake.
  • If a payer starts deferring payments without notice, ask for the policy or contract provision in writing.
  • Monitor deferrals by payer with an ERA Analyzer.
  • Keep timing adjustments out of denial reporting. See how to read CARC and RARC codes.
  • OA-271 (Prior contractual reductions related to a current periodic payment as part of a contractual payment schedule when deferred amounts have been…): Reports prior contractual reductions when deferred amounts from a periodic payment schedule were reported earlier.
  • CO-104 (Managed care withholding.): Managed care withholding, a risk-sharing hold that may or may not be returned.
  • CO-245 (Provider performance program withhold.): Provider performance program withhold.
  • OA-133 (The disposition of this service line is pending further review. (Use only with Group Code OA).): Service line pending further review, a non-final status rather than a scheduled deferral.

CO-143 FAQ

Will I receive the deferred amount?

It should be paid later under the arrangement the payer applied. Ask the payer for the expected payment date and how it will appear on a future remittance.

How is CO-143 different from a withhold?

A deferral is a timing difference: the money is owed and scheduled. A withhold, such as CARC 104, may be kept by the payer depending on contract results.

How should I post CO-143?

Post it to a deferred receivable rather than a write-off, so it stays visible until the payer pays it.