What does CARC 3 mean?

CARC 3 means "Co-payment Amount". The recommended action is: Collect co-payment from patient at time of service or bill patient.

How do I resolve CARC 3?

Verify the copay amount from the patient's insurance card or eligibility check Confirm copay was collected at time of service If not collected, issue patient statement for copay amount Do not balance bill beyond the stated copay amount Document copay collection in patient account notes

Can CARC 3 be appealed?

CARC 3 has a 98% recovery rate and typically resolves in 1-2 days. Resolution difficulty is rated Easy.

CARC Code

3

🟡 Soft Denial

Co-payment Amount

98%

Recovery Rate

1-2 days

Avg. Resolution

Easy

Difficulty

Very Common

Frequency

Recommended Action

Collect co-payment from patient at time of service or bill patient

Step-by-Step Resolution

1
Verify the copay amount from the patient's insurance card or eligibility check
2
Confirm copay was collected at time of service
3
If not collected, issue patient statement for copay amount
4
Do not balance bill beyond the stated copay amount
5
Document copay collection in patient account notes

Common Remark Codes (RARC)

These RARC codes often appear alongside CARC 3 on remittance advice.

RARC N1·Alert: Refer to provider manual for additional guidance

→ Review plan copay schedule for specialty vs. PCP rates

Payer-Specific Notes

How major payers handle CARC 3 in practice.

Delta Dental

Copays rare in dental; more common with DHMO plans — verify plan type

DHMO Plans

Fixed copay per procedure schedule; do not bill above schedule copay

Common 835 Combinations

CARC 3 most often appears with these Group Code + RARC combinations on 835 remittances.

PRPR-3 COCO-3Appealable OAOA-3

Look up any combination →

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