Medical Denial Code Guide

Look up CARC and RARC denial codes. Find causes, resolutions, and prevention tips.

How Denial Codes Work

Example — Claim denied for missing procedure code (CO-16 + M51)

CO
Group Code
who pays
-
16
CARC
why denied
+
M51
RARC
what exactly

Group Code

Tells you who pays. CO = provider absorbs. PR = patient owes. Same CARC means different things per group.

CARC

Claim Adjustment Reason Code — tells you why a claim was denied or adjusted. ~280 active codes.

RARC

Remittance Advice Remark Code — supplements the CARC with exactly what's wrong. Always check the RARC before fixing a claim.

Browse by Group Code

CO
Contractual Obligation
Provider bears the cost. Cannot bill patient. Most common group code.
PR
Patient Responsibility
Patient owes. Deductibles, copays, coinsurance, non-covered services.
OA
Other Adjustment
Adjustments that don't fit CO or PR. Often coordination of benefits.
PI
Payor Initiated Reduction
Payer-driven reduction. Similar to CO but with different appeal rights.
Browse All CARC Codes Browse All RARC Codes

Most Common Denial Codes

Code Name Action
CO-16 Missing Information or Billing Error Verify & Resubmit
CO-45 Charge Exceeds Fee Schedule / Maximum Allowable Review & Decide
PR-1 Deductible Amount Collect from Patient
CO-4 Procedure Code / Modifier Mismatch Resubmit
CO-97 Bundled Service — Not Paid Separately Review & Decide