Denial codes

Denial codes: CARC and RARC meanings

164 claim adjustment reason codes and 57 remark codes, each with a plain-English meaning, common causes, and what to check before resubmitting.

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Group codes

CO
Contractual obligation. The provider absorbs the amount under its contract or the payer's rules. Do not bill the patient for it.
PR
Patient responsibility. The patient, or a secondary payer, may owe the amount.
OA
Other adjustment. An adjustment that is neither the provider's nor the patient's, often from coordination of benefits.
PI
Payer initiated reduction. The payer reduced the amount on its own. The patient is not billed for it.
CR
Correction and reversal. Corrects or reverses an earlier claim adjustment.

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Questions

What is a denial code?

On a remittance (835) or EOB, a claim adjustment reason code (CARC) says why a claim line was paid differently than billed. It comes with a group code, such as CO or PR, that says who owes the difference.

What does CO mean on a denial?

Contractual obligation. The provider absorbs the amount under its contract or the payer's rules. Do not bill the patient for it.

What does PR mean on a denial?

Patient responsibility. The patient, or a secondary payer, may owe the amount.

What is a remark code?

A remittance advice remark code (RARC), such as N130 or M15, adds detail to the reason code. It often names the field to fix or the policy that applied.

Why is the exact X12 wording not on this site?

X12 owns the CARC and RARC lists and does not allow its descriptions to be republished. Each page here has a plain-English summary written by Rivvi and a link to the X12 list.

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