463 Denial Code — Meaning, Causes & Resolution Guide

Official CARC Description Denied. Payment for room accommodation charge for the date of discharge is not payable.

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📋What Does 463 Mean? A Full Explanation

Denial code 463 is a Claim Adjustment Reason Code (CARC) used on the 835 electronic remittance advice and Explanation of Benefits (EOB) to communicate why a claim or service line was adjusted from the billed amount. This code is standardized by X12 and used consistently by Medicare, Medicaid, and commercial payers across all HIPAA-compliant transactions.

When this code appears on your remittance, it signals a specific issue that caused the payer to pay a different amount than billed. Identifying the root cause tied to this code is the first step toward correcting the claim, resubmitting, or filing an appeal to recover lost reimbursement.

⚠️Common Reasons You Received Denial Code 463

→Missing, invalid, or incomplete information on the claim
→Billing code mismatch or modifier inconsistency
→Service not covered under the patient's plan on the date of service
→Authorization or referral not obtained prior to treatment
→Duplicate claim submission or previously adjudicated service

✅How to Resolve and Fix a 463 Denial

1Review the full ERA/EOB for any accompanying Remark Codes (RARC) which provide additional detail about the specific issue.
2Verify the patient's eligibility, coverage, and benefits for the date of service in question.
3Identify and correct any claim errors — wrong codes, missing modifiers, incorrect dates, or missing authorization numbers.
4Gather supporting documentation (medical records, auth, referral, ABN) required for appeal or corrected claim.
5Resubmit a corrected claim or file a formal appeal with the payer within their specified deadline (typically 90–180 days).

💰Who Pays? Financial Responsibility for Code 463

The Group Code paired with 463 on the remittance determines who is financially responsible for the adjusted amount. Always check the accompanying Group Code before billing the patient or writing off the balance.

With Group Code

Provider write-off — patient is NOT responsible

With Group Code

Patient owes — copay, deductible, or coinsurance

With Group Code

Other — no standard CO or PR responsibility applies

📨How to Appeal a 463 Claim Denial Effectively

Appealing a 463 denial requires a timely, well-documented response. Most payers require appeals within 30 to 180 days of the remittance date — missing this window typically results in a final denial. Start by reviewing the payer's provider manual for the specific appeal process and required forms.

Your appeal package should include a clear cover letter referencing the original claim number and denial date, corrected claim information if applicable, relevant medical records or clinical notes supporting medical necessity, and copies of the original claim and remittance advice. Submit via certified mail or the payer portal and retain confirmation of receipt.

❓Frequently Asked Questions — Denial Code 463

What does denial code 463 mean on an EOB?

Denied. Payment for room accommodation charge for the date of discharge is not payable.

Can a 463 denial be appealed?

Yes — most denials tied to 463 can be appealed with proper documentation submitted within the payer's appeal deadline. Review the Group Code on the remittance first to understand who bears financial responsibility.

How long do I have to appeal a 463 denial?

Medicare requires appeals within 120 days of the remittance date. Commercial payers typically allow 90–180 days. Check your specific payer's provider manual for exact deadlines.

Is 463 a patient responsibility or provider write-off?

It depends on the Group Code paired with 463. CO = contractual write-off (provider absorbs), PR = patient owes the balance, OA = other adjustment (review case by case).

Disclaimer: This content is for educational purposes only and is not a substitute for professional medical billing advice. CARC codes and their interpretations may be updated. Always refer to the official X12 CARC list and your payer's guidelines.