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RARC Code Reference

RARC N723: Patient must use Liability set-aside (LSA) funds to pay for the medical service or item.

Patient must use Liability set-aside (LSA) funds to pay for the medical service or item.

Code type RARC (Remark)
Category Coordination of Benefits

Common CARC pairings

RARC N723 appears with a Claim Adjustment Reason Code (CARC) on the 835 electronic remittance advice and gives more detail about the adjustment. These are the CARCs most often paired with RARC N723.

CARCMeaning
20 This injury/illness is covered by the liability carrier.
201 Patient is responsible for amount of this claim/service through 'set aside arrangement' or other agreement. (Use only with Group Code PR). At least one Remark Code must be provided (may be comprised of either the NCPDP Reject Reason Code, or Remittance Advice Remark Code that is not an ALERT.)

See the full resolution workflow for RARC N723

Members of the EDI-Code Intelligence Lab get the step-by-step rework path, appeal language, root-cause drivers, and prevention checklist for every RARC and CARC pairing, plus payer-specific requirements.

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