What is a RARC?
A Remittance Advice Remark Code adds detail to an adjustment: which information was missing, which policy was applied, or what to do next. It travels alongside a CARC.
Reason and remark codes together
| Reason | Remark | What the payer is saying |
|---|---|---|
| CO-16 | M51 | A procedure code is missing, incomplete or invalid |
| CO-16 | N290 | The rendering provider's identifier is missing or invalid |
| CO-197 | M62 | The authorization number is missing, incomplete or invalid |
| CO-50 | N115 | The decision was based on a Local Coverage Determination |
- N-codes and M-codes are both remark codes. M-codes are the older series, first created for Medicare.
A CARC says why money wasn’t paid. A RARC says what exactly went wrong, or which rule was applied. Some reason codes, like CO-16, always require a remark code, because on their own they only say “something is missing.”
Two kinds of remarks
- Supplemental: detail about the adjustment, such as the missing field or the policy behind a decision.
- Informational: notes that don’t explain a specific adjustment, such as a claim being forwarded to a supplemental payer.
Why they matter
Working denials by reason code alone sends people hunting through the claim to find the problem. The remark code usually names it. Reading both is the difference between a corrected claim sent today and one sent after a phone call next week.
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