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Denial Codes Reference — CARC & RARC

Plain-English, reviewer-authored reference for every ANSI X12 835 denial code. Claim Adjustment Reason Codes (CARC) tell you why the payer reduced or denied payment. Remittance Advice Remark Codes (RARC) are the informational remarks that accompany them — pair codes, policy pointers, and disambiguation. Every page links the pair so you can work a denial from either side.

Reviewed by QuickIntell Editorial Team · Last reviewed

Updated

TL;DR

CARC and RARC are the two X12 code sets published on every 835 electronic remittance. CARC explains the financial adjustment (why the payer paid less than billed — bundling, medical necessity, deductible, timely filing, etc.); RARC provides the informational remark that narrows the reason (paired CARC, missing modifier, LCD/NCD citation, coordination of benefits). A denial almost always carries one CARC plus one or more RARCs. Work both: the CARC tells you which remediation path to take, and the RARC tells you which piece of data or documentation is missing.

How to use this reference

  1. Start from the CARC on the remit. The CARC is the financial reason; the RARC is the elaboration. Fix the CARC and the RARC usually resolves.
  2. Check the paired RARC. Many CARCs have a canonical RARC partner (e.g., CARC 97 + RARC M15 for bundling, CARC 197 + RARC M62 for prior auth). The pair tells you what documentation the payer wants.
  3. Work the remediation path first. Most denials (modifier, diagnosis specificity, timely filing, patient demographics) clear with a corrected claim, not an appeal.
  4. Appeal only when the merits warrant it. Each code page includes the appeal letter template language reviewers consider effective against the X12 definition and the typical payer policy.

Stop working the same denials twice

QuickRCM prevents preventable denials at claim-scrub time and routes the unavoidable ones to the right worker with the right documentation attached — the difference between a 55% overturn rate and a 20% one.