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RARC N25 · Remittance Advice Remark Code

RARC N25 Remark Code: This company has been contracted by your benefit plan to provide administrative…

Reviewed by QuickIntell RCM Editorial Team · Last reviewed

Updated

Not an ICD-10 code. RARC N25 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 N25 (X12 This company has been contracted by your benefit plan to provide administrative claims payment serv…). RARC N25 identifies the payer as a TPA/administrator, not the risk-bearer.

Official X12 description

“This company has been contracted by your benefit plan to provide administrative claims payment services only.”

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

Paired CARCs for RARC N25 publish as the reviewer roster curates the cross-links. Check the CARC reference for the financial adjustment on the same remit line.

What RARC N25 actually means

RARC N25 identifies the payer as a TPA/administrator, not the risk-bearer. Informational.

Common root causes

  • TPA processing on behalf of plan.

Prevention checklist

  • TPA relationship awareness.

Resolution & appeal strategy — step by step

Because RARC N25 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 applicable.
Sample reconsideration language referencing RARC N25
[Provider letterhead] Re: Reconsideration — Claim #{claim_number}, CARC {carc} / RARC N25 Member: {member_name} · Member ID: {member_id} Date(s) of Service: {dos} The 835 remittance on {remittance_date} carried RARC N25: "This company has been contracted by your benefit plan to provide administrative claims payment services only." 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 N25?

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 N25

QuickRCM reads RARC N25 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 N25

What does RARC N25 mean?

RARC N25 is an X12 Remittance Advice Remark Code. The official X12 definition is: "This company has been contracted by your benefit plan to provide administrative claims payment services only." It is supplemental to a Claim Adjustment Reason Code (CARC) on the same 835 line.

How do I resolve a RARC N25 remark on a remit?

Start from the root cause: TPA processing on behalf of plan. First step: Not applicable. Because RARCs are supplemental, the resolution is almost always to address the paired CARC rather than appeal the RARC alone.

Where does RARC N25 appear on the 835 ERA?

RARC N25 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 N25 the same as ICD-10 code N25?

No. RARC N25 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.