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RARC M27 · Remittance Advice Remark Code

RARC M27 Remark Code: The patient has been relieved of liability of payment of these items and servic…

Reviewed by QuickIntell RCM Editorial Team · Last reviewed

Updated

Not an ICD-10 code. RARC M27 is a remittance-advice remark code published by X12 and carried on the 835 LQ segment. Any ICD-10 code with the same letters and digits (e.g., ICD-10 M15 osteoarthritis, N130 other urinary tract disorders) is a separate, unrelated code set used in diagnoses on the 837. Confirm the context before acting on this page.

TL;DR

RARC M27 (X12 The patient has been relieved of liability of payment of these items and services under the limitat…). Commonly paired with CARC 96, CARC 209. RARC M27 reports the patient is relieved of liability under Medicare's limitation-of-liability rule (no advance notice of non-coverage).

Official X12 description

“The patient has been relieved of liability of payment of these items and services under the limitation of liability provision of the law.”

Source: X12 Remittance Advice Remark Codes. X12 publishes and maintains the RARC set; always verify against the current release before building a claim workflow.

Paired CARC codes

RARC M27 almost never appears alone — it accompanies one of the CARCs below on the same 835 remittance line. Fix the CARC and the RARC typically clears; the RARC alone is informational.

Paired CARCWhat the CARC means
CARC 96Non-covered charge(s).
CARC 209Per regulatory or other agreement, the provider cannot collect this amount from the patient. However, this amount may be billed to subsequent payer. Refund to…

What RARC M27 actually means

RARC M27 reports the patient is relieved of liability under Medicare's limitation-of-liability rule (no advance notice of non-coverage). Provider absorbs the balance.

Common root causes

  • ABN not obtained before non-covered service.

Prevention checklist

  • ABN workflow for any Medicare non-covered service.

Resolution & appeal strategy — step by step

Because RARC M27 is supplemental to a CARC, the resolution path usually starts by fixing the underlying adjustment reason. A formal appeal of the RARC alone is rarely necessary.

  1. 1Not appealable — limitation-of-liability triggered.
Sample reconsideration language referencing RARC M27
[Provider letterhead] Re: Reconsideration — Claim #{claim_number}, CARC 96 / RARC M27 Member: {member_name} · Member ID: {member_id} Date(s) of Service: {dos} The 835 remittance on {remittance_date} carried RARC M27: "The patient has been relieved of liability of payment of these items and services under the limitation of liability provision of the law." We request reconsideration. The attached documentation rebuts the remark code: 1. [State the fact that rebuts the remark — authorization number, primary 835, modifier rationale, LCD citation, etc.] 2. [Reference the paired CARC and the corresponding fix] 3. [Attach the supporting document listed in step 1] Attached: {list supporting documents} Please process this line under the member's benefits. Contact the billing office at {provider_phone} for questions. Sincerely, {billing_manager_name}, {credentials}

Edit the bracketed fields before sending. Payer-specific reconsideration forms are often required — check the provider portal first.

How common is RARC M27?

Platform frequency
Pending ETL

Platform frequency ranks publish once the anonymized denial-rate pipeline reaches the publication threshold (strategy §12 Phase 2).

How QuickRCM handles RARC M27

QuickRCM reads RARC M27 alongside its paired CARC in the 835 LQ segment and routes the line to the correct worker queue with the right documentation already attached:

  • Denial routing rules tuned to the CARC+RARC pair — the paired combination tells QuickRCM which documentation the payer will accept.
  • Reconsideration template for this exact remark code pulls the supporting facts from the claim automatically.
  • Pre-submission scrubs that catch the preventable drivers surfaced on this page before the 837 leaves the clearinghouse.
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Frequently asked questions — RARC M27

What does RARC M27 mean?

RARC M27 is an X12 Remittance Advice Remark Code. The official X12 definition is: "The patient has been relieved of liability of payment of these items and services under the limitation of liability provision of the law." It is supplemental to a Claim Adjustment Reason Code (CARC) on the same 835 line.

Which CARC is paired with RARC M27?

RARC M27 is most commonly paired with CARC 96, CARC 209. The CARC is the financial adjustment reason; the RARC is the informational remark. Fix the paired CARC first — the RARC usually clears with the corrected claim.

How do I resolve a RARC M27 remark on a remit?

Start from the root cause: ABN not obtained before non-covered service. First step: Not appealable — limitation-of-liability triggered. Because RARCs are supplemental, the resolution is almost always to address the paired CARC rather than appeal the RARC alone.

Where does RARC M27 appear on the 835 ERA?

RARC M27 is carried on the 835 Loop 2110 LQ segment alongside the CARC in the CAS segment of the same service line. The code and its X12 description also print on the paper EOB in the "Remark Code" or "Remark" column next to the corresponding denial or adjustment reason.

Is RARC M27 the same as ICD-10 code M27?

No. RARC M27 is a remittance-advice remark code published by X12 and carried on the 835. Any ICD-10 code with the same letters and digits is a diagnosis code on the 837 HI segment — a completely different code set maintained by the WHO/CMS. Use the transaction context (835 = RARC; 837 = ICD-10) to disambiguate.

Disclaimer

This page is operational reference for medical-billing professionals. It is not legal, clinical, or contractual advice. X12 code descriptors are maintained by the X12 External Code Lists; always verify against the current X12 release and the payer's own published policy before submitting or appealing a claim.