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.
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.
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).
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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