Carc documentation form template 2025

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CARC stands for Claim Adjustment Reason Code and provides the reason for a claim adjustment made by the payer. They help you understand why the claim amount differs from the billed amount. If no adjustment has been made, the claim will not have a CARC.
When insurance carriers send payment and adjustment information, either on an EOB or an ERA, they often include a code with a small message. These codes are known as CARC values, or Claim Adjustment Reason Codes, and they are an industry-wide standard.
When you see Disallow or RC-AMT on an EOB, this is the portion of the billed charge that the insurance company will not pay. This is inclusive of the write-off amount based on the allowed amount .
When you receive denial code 23, this means that your denied claim is due to the impact of prior payer(s) adjudication. This includes payments and/or adjustments. You can find this information on the electronic remittance advice (ERA) and explanation of benefits (EOB) sent back by the payer.
The acronym CARC stands for Claim Adjustment Reason Code, and its used in medical billing and claims adjudication. This code is key to understanding the process of adjusting healthcare claims based on an analysis of all the available data.
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Claim Adjustment Reason Codes (CARC)
EFFECTIVE JULY 1, 2022, payers will be required to use the following Claim Adjustment Reason Codes (CARCs) and Remittance Advice Remark Codes (RARCs) on an explanation of benefits/explanation of review (EOB/EOR) sent to a health care provider to object to payment of a medical bill.

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