What these codes are
CARC (Claim Adjustment Reason Codes) tell you why a payer adjusted or denied a claim line. RARC (Remittance Advice Remark Codes) add supporting detail. They appear together on the EOB / ERA a payer returns after adjudicating a claim.
Reference only. CARC/RARC are national code sets updated periodically — verify against the current official list before acting on a denial.
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Frequently asked questions
What is a CARC code?
A Claim Adjustment Reason Code (CARC) explains why a payer adjusted, reduced, or denied a payment on a claim line. It always appears with a Group Code (e.g., CO, PR, OA, PI) that shows who is financially responsible for the adjustment.
What is a RARC code?
A Remittance Advice Remark Code (RARC) provides extra detail that supplements a CARC on the remittance advice (ERA/EOB). Codes starting with MA or M are more general; codes starting with N convey specific remarks.
What is the difference between CARC and RARC?
A CARC states the reason for an adjustment; a RARC adds clarifying detail. A single claim line can carry one CARC plus one or more RARCs that together explain exactly what happened and why.
Where do I find these codes?
They appear on the Electronic Remittance Advice (ERA, 835) and the Explanation of Benefits (EOB) the payer returns after adjudicating a claim. Learn how to read them in our guide to the EOB.
Are these the official CMS code lists?
Yes — CARC and RARC are national code sets maintained for use in HIPAA transactions. Codes are updated periodically, so always confirm against the current official list before appealing a denial.