What Is RARC?
A Remittance Advice Remark Code is a supplemental code used on the 835 ERA to provide additional information about an adjustment, often clarifying or specifying the reason behind a CARC; RARCs are maintained by CMS and the Remittance Advice Code Committee.
- Most billing teams under-utilize RARCs.
RARC
Also known as: Remittance Advice Remark Code; Remark Code
A Remittance Advice Remark Code is a supplemental code used on the 835 ERA to provide additional information about an adjustment, often clarifying or specifying the reason behind a CARC; RARCs are maintained by CMS and the Remittance Advice Code Committee.
Definition
RARCs sit alongside CARCs in the 835's MOA, MIA, and LQ segments to provide narrative explanation. RARCs are alphanumeric: M-codes are CMS-developed (e.g., M76, MA130), N-codes were added later for both Medicare and commercial use (e.g., N382, N522). The Washington Publishing Company maintains the official lists and updates them quarterly. RARCs frequently identify the specific information missing (N382 = missing/incomplete patient identifier, N640 = exceeds limits), the appeal rights (MA130 = your claim contains incomplete and/or invalid information), or the regulatory basis for the action. Four remark codes worth memorizing: N382 — missing, incomplete, or invalid patient identifier; correct the member ID or MBI and resubmit. MA130 — the claim contains incomplete and/or invalid information; it is unprocessable, so it must be corrected and resubmitted, not appealed. M76 — missing, incomplete, or invalid diagnosis or condition. M77 — missing, incomplete, or invalid place of service.
Example
An 835 claim line denied with CARC 16 (lacks information) and RARC N382 (missing/incomplete patient identifier) tells the biller specifically: the denial is for missing data, and the missing data is patient identifier — typically meaning the member ID, Medicare HICN/MBI, or subscriber number was wrong or absent.
Common Misconceptions
RARCs alone are insufficient — they must be read in conjunction with the CARC. CARC tells you 'what happened' (denied, adjusted, patient responsibility); RARC tells you 'why' or 'what's missing.' Posting workflows need both to route denials correctly. The dependency runs hardest on A1: the claim-level denial you cannot work without its paired RARC is CO-A1, a container CARC that carries no reason of its own, so the remark code beside it holds every actionable detail.
Practical Application
Most billing teams under-utilize RARCs. Capturing both CARC and RARC during 835 posting enables much sharper denial categorization — e.g., separating CARC 16 + N382 (missing patient ID, fixable in PM) from CARC 16 + MA130 (multiple data issues, requires full claim review).
RARC: Frequently Asked Questions
Common questions about RARC in medical billing.
What is the difference between a CARC and a RARC?
A CARC tells you what the payer did — denied, adjusted or reduced — and, through its Group Code, who owes the balance. A RARC tells you why, or what is missing. RARCs alone are insufficient; they must be read alongside the CARC, and posting workflows need both to route denials correctly.
Where do RARCs appear on an 835?
RARCs sit alongside CARCs in the 835's MOA, MIA and LQ segments, where they provide the narrative explanation for an adjustment. A single remittance line can carry one CARC and zero, one, or multiple RARCs explaining it.
What is the difference between an M-code and an N-code RARC?
RARCs are alphanumeric. M-codes are CMS-developed (for example M76 and MA130). N-codes were added later for both Medicare and commercial use (for example N382 and N522). The Washington Publishing Company maintains the official lists and updates them quarterly.
What does RARC N382 mean?
N382 means a missing, incomplete or invalid patient identifier. On a line denied with CARC 16 plus N382, the payer is telling you the denial is for missing data and that the missing data is the patient identifier — typically the member ID, Medicare MBI, or subscriber number was wrong or absent. Correct the identifier and resubmit.
What does MA130 mean, and should you appeal it?
MA130 means the claim contains incomplete and/or invalid information. It is unprocessable, so it must be corrected and resubmitted as a corrected claim rather than appealed. That is the practical difference from CARC 16 plus N382: N382 is a single fixable field in the practice management system, while MA130 signals multiple data issues that require a full claim review.
Which RARCs are worth memorising?
Four cover a large share of remittance traffic: N382 — missing, incomplete or invalid patient identifier; MA130 — the claim contains incomplete and/or invalid information, so correct and resubmit rather than appeal; M76 — missing, incomplete or invalid diagnosis or condition; and M77 — missing, incomplete or invalid place of service.
Related Terms
CARC
A Claim Adjustment Reason Code is a standardized code maintained by the X12 External Code List committee that explains why a claim line was adjusted (paid less than billed, denied, or transferred to patient responsibility) on a payer's 835 ERA.
Read definition arrow_forwardERA (Electronic Remittance Advice / 835)
The ERA (X12 835 transaction) is the HIPAA-standard electronic file payers send to providers detailing claim adjudication results — payments, adjustments, denials with CARC/RARC codes — typically paired with EFT funds transfer.
Read definition arrow_forwardCARC 97
CARC 97 indicates the payer denied or reduced payment because the service is bundled with another service on the same claim under NCCI Procedure-to-Procedure edits — 'The benefit for this service is included in the payment/allowance for another service/procedure that has already been adjudicated.'
Read definition arrow_forwardWhere This Applies on MedPrecision
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