CARC Code
85
Patient Interest Adjustment
This code indicates an adjustment for interest charges that the patient is responsible for paying. It should only be used when the patient is financially responsible for the interest amount.
contractualHow to resolve this denial
Identify the correct payer and resubmit the claim accordingly
- 1
Review the plan's Summary of Benefits to confirm the service is excluded
- 2
Inform the patient in writing that the service is not covered under their plan
- 3
Determine if an ABN was issued prior to service (required for Medicare)
- 4
Bill the patient for the non-covered service if an ABN was signed
- 5
Document the non-coverage determination in the patient account
▶✓ Pre-action checklist — verify before contacting the payer
Review the full remittance advice (ERA/EOB) for additional RARC codes that explain the denial.
Verify the claim was submitted with correct patient eligibility and benefit information.
Check if this denial applies to a specific line item or the entire claim.
▶More about CO-85 — stats, related codes, appeal template
55%
Recovery Rate
14-30 days
Avg. Resolution
Medium
Difficulty
Occasional
Frequency
Payer-Specific Notes
How major payers handle CARC 85 by specialty.
Blue Cross Blue Shield
BCBS requires appeal submission within 180 days for most plans.
Appeal Letter Template
Generic appeal template for CARC 85 denials.
We are submitting a formal appeal for claim [CLAIM_NUMBER] for patient [PATIENT_NAME], date of service [DOS]. This claim was denied/adjusted with CARC 85 indicating: "Claim/service not covered by this payer/contractor. Send to correct payer/contra." We have reviewed the claim and are providing the attached documentation to support reconsideration. [SUPPORTING_DOCUMENTATION]. Please reconsider payment per the terms of our contract.
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