RARC M2: Not paid separately when the patient is an inpatient.
The service was bundled with the inpatient stay payment under DRG. Not separately billable.
What it means
The official X12 description: “Not paid separately when the patient is an inpatient.”
In plain language: The service was bundled with the inpatient stay payment under DRG. Not separately billable.
What to do
Verify the patient's inpatient/outpatient status. If the patient was outpatient or in observation, the provider should rebill correctly.
Frequently asked questions
What does RARC M2 mean?
Not paid separately when the patient is an inpatient. In plain language: The service was bundled with the inpatient stay payment under DRG. Not separately billable.
What should I do when I see RARC M2?
Verify the patient's inpatient/outpatient status. If the patient was outpatient or in observation, the provider should rebill correctly.
Commonly paired CARC codes
Sources
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