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CO-87 Denial Code (Deactivated): Transfer Amount

CO-87 reported a transfer amount, generally tied to how an inpatient stay was paid when the patient was transferred. X12 deactivated it without naming a successor; CARC 232 now covers the institutional transfer amount.

X12 deactivated CARC87 on January 1, 2012. Payers should no longer use it on new remittances, but it can still appear on older ERAs, corrected claims, and appeals.

Code: CO-87 (CARC 87)
Status: Deactivated StoppedJanuary 1, 2012 (in use since January 1, 1995).
Code set: Claim Adjustment Reason Codes (CARC)
Group codes: CO (Contractual Obligation): The difference was a payment adjustment for the facility, not a patient liability.
Official description: Transfer amount.
X12 Claim Adjustment Reason Codes, retrieved September 25, 2026
Last verified: September 24, 2026 against the official X12 list.

What CO-87 meant

CARC 87, “Transfer amount,” was used when a payment was adjusted because of a patient transfer. In inpatient DRG payment, when a patient is moved to another hospital or certain post-acute settings, the sending facility may receive less than the full DRG. The code showed that difference on the remittance.

What replaced it

X12 did not name a successor, but the active code CO-232 now covers the institutional transfer amount and states that it explains the DRG amount difference on transfers. Nearby codes include CO-A6 for a prior hospitalization or 30-day transfer requirement not met, and CO-186 for a level-of-care change.

If you still see CO-87

It can appear in older remittance data. Handle it the way you would a CO-232: verify the discharge status code on the claim, since an incorrect patient status can trigger transfer pricing when the patient actually went home. If the status was wrong, submit a corrected claim. If it was right, post the transfer reduction as a contractual adjustment.

CO-232 (Institutional Transfer Amount.): Institutional transfer amount, which explains the DRG amount difference when a patient is transferred.
CO-A6 (Prior hospitalization or 30 day transfer requirement not met.): Prior hospitalization or 30-day transfer requirement not met.
CO-186 (Level of care change adjustment.): Level of care change adjustment.

CO-87 FAQ

Why would a transfer reduce payment?

Under DRG payment, a stay that ends in a transfer to another facility can be paid on a per-day basis up to the full DRG amount, rather than the full DRG. The difference was reported as a transfer amount.

Which code should I expect for transfers today?

CARC 232, institutional transfer amount, which applies to institutional claims only.

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