Claims & denials
CARC / RARC
The standardized codes on a remittance that state why a claim was reduced or denied.
What it means in dermatology
Also known as: Claim adjustment reason code / remittance advice remark code
CARC gives the adjustment reason; RARC adds the specific detail. Reading them together is what distinguishes a fixable denial from a contractual adjustment that should never have been posted as a denial.
Dermatology remittances cluster around a small set: medical necessity, bundling, global period, missing prior authorization, and non-covered cosmetic services.
Why it matters to your revenue
Denials posted as adjustments disappear from the denial rate without any money being recovered — the most common way a practice hides its own leakage.
See this term in your own numbers
A free claims audit reviews a de-identified sample of your dermatology claims and returns a line-item findings report — including where terms like this one are costing you money.
Request a free claims audit