CO-P10: Payment Reduced to Zero Pending Litigation

What Does CO-P10 Mean?

CO-P10 is less common but may appear when the carrier processes the litigation hold as a contractual adjustment. This does not necessarily indicate a permanent denial — it may be reprocessed once the litigation concludes.

CARC P10 is applied when the P&C carrier has reduced the claim payment to zero because of ongoing litigation that prevents the carrier from making a payment determination. This code replaces the older CARC 244 and is exclusive to Property and Casualty claims. The carrier has indicated that additional information will be sent following the conclusion of the litigation.

The litigation behind P10 can take many forms. It may be a dispute between the insured and the carrier over policy coverage, a fault or liability determination in a personal injury case, a subrogation action against a third party, or a fraud investigation that has escalated to legal proceedings. Regardless of the specific legal issue, the effect on the provider is the same — payment is suspended entirely until the litigation resolves.

P10 creates a significant cash flow challenge because the payment hold is typically open-ended. The provider has no guarantee of when the litigation will conclude, and some cases extend for months or years. Providers should set up dedicated tracking for P10 claims, consider filing medical liens where jurisdictionally permitted to protect their claim to payment from any eventual settlement or judgment, and consult legal counsel if the hold becomes unreasonably prolonged.

How to Resolve

Track the litigation status, file protective medical liens if applicable, and request claim reprocessing once the litigation concludes.

1. Confirm this is a temporary hold Contact the carrier to verify that CO-P10 is an interim adjustment and will be reprocessed after the litigation concludes.
2. Track and follow up Monitor the litigation status and request claim reprocessing once the case is resolved.
3. File a medical lien if appropriate Protect your financial interest by filing a medical lien against the case.

How to Prevent CO-P10

• Verify P&C claim litigation status before rendering services
• Maintain active tracking of all claims with litigation holds

Also Filed As

The same CARC P10 may appear with different Group Codes:

Related Denial Codes