CARC in Medical Billing
CARC stands for Claim Adjustment Reason Code, used to explain why a claim or a portion of a claim was adjusted or denied.
CARC in Medical Billing Explained
In medical billing, Claim Adjustment Reason Codes (CARCs) are used by payers on remittance advice documents to explain adjustments made to the claim’s payment. These codes are standardized and help providers understand why full payment was not issued, which may include reasons like coding errors, lack of medical necessity, or missing information.
For example, a claim may be partially paid, with a CARC code indicating that part of the service was not covered due to a coding error.
Check acronyms and abbreviations in Medical billing glossary.
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