CARC121ReferenceCurrentVerified Aug 15, 2026CARC 121
AR Guide explanation
What it means
Indemnification adjustment compensating for outstanding member responsibility.
AR Guide knowledge
Common denial category
AR Guide knowledge
Common causes
- Payer adjusting for member payments made to the provider
AR Guide knowledge
What AR should verify
- Reconcile the member's payments against this adjustment
AR Guide knowledge
Recommended action
- Apply the adjustment and reconcile patient payments
About this guidance: Note
AR Guide knowledge is general reference content written by our team — it is not payer-specific policy and never replaces the payer’s documentation or your contract. Always confirm specifics with the payer.