CARC 150 — Payer deems the information submitted does not support this level of service.

AR Guide workflow

Step-by-step: Medical Necessity

✓ Workflow verified Aug 15, 2026 · Verified via review of official sources and AR Guide practice testing — not payer policy. View the full guide

VerifySteps 1–11
1. The payer's cited policy or guideline
2. Clinical documentation for the date of service
3. Service-to-criteria match, point by point
4. Prior authorization status
5. Frequency / level of service billed
6. CARC 50 / 150 / 151 and the accompanying remark code
7. Review the payer's medical policy or coverage determination cited in the denial
8. Confirm the clinical documentation supports the service
9. Check whether a prior authorization would have prevented the denial
10. Ask the payer to cite the specific policy or guideline used
11. Compare the service to the policy's criteria point by point
ActSteps 12–15
1. Appeal with clinical documentation that addresses the cited criteria
2. Reference the applicable policy in the appeal
3. If the payer cannot cite a policy, escalate — denials must be based on a defined policy
4. For experimental denials, gather peer-reviewed evidence supporting the service
Document & QASteps 16–22
1. Clinical notes and records for the date of service
2. The payer's cited policy and the criteria met
3. Peer-reviewed literature for experimental/investigational appeals
4. Any prior authorization or approval documentation
5. Attach supporting clinical documentation on the first appeal
6. Track denial reasons by payer and policy to spot patterns
7. Verify the payer cites a specific policy before appealing

AR Guide explanation

What it means

The payer deems the information submitted does not support the level of service.

AR Guide knowledge

Common denial category

Medical Necessity — The payer determined the service was not medically necessary or reasonable according to its policy. These denials are documentation-driven.

AR Guide knowledge

Most common causes

Documentation does not support the level billed
Level of service not consistent with the visit documentation

AR Guide knowledge

Action in your PM/EMR system

In your PM system: route the claim to your appeals queue with the clinical documentation attached. Do not resubmit the same claim — pull the payer's cited policy and map your documentation to its criteria.

Illustrative scenario

Real-world example

A level-4 visit was denied with CARC 50 because the documentation did not support the level. The appeal attached the full note mapped to the payer's criteria and the level was upheld on reconsideration.

Example — not a claim about any specific payer or account.

AR Guide knowledge

What AR should verify

Compare the documentation to the level billed
Confirm the documentation supports the key components of the level

AR Guide knowledge

Recommended action

Appeal with the full clinical documentation
If the level was overstated, correct and resubmit at the supported level

Appeal template

No code-specific template yet

No downloadable template targets CARC 150 specifically. Browse all appeal letter templates — or follow the recommended workflow above.

Priority 2

Commonly paired RARCs

RARCs commonly accompany CARC 150 on the ERA/EOB. Select the one on your line to focus the workflow, or use the list as a lookup.

What RARC is on your ERA/EOB line?

RARCM25The information furnished does not substantiate the need for this level of service. If you believe the service should have been fully covered as billed, or if you did not know and could not reasonably have been expected to know that we would not pay for this level of service, or if you notified the patient in writing in advance that we would not pay for this level of service and he/she agreed in writing to pay, ask us to review your claim within 120 days of the date of this notice. If you do not request an appeal, we will, upon application from the patient, reimburse him/her for the amount you have collected from him/her in excess of any deductible and coinsurance amounts. We will recover the reimbursement from you as an overpayment.Map the note to the billed level's documentation requirements (history, exam, medical decision making). If the note supports the level, appeal with the documentation mapped to the criteria; if not, correct the level and resubmit.
RARCM26The information furnished does not substantiate the need for this level of service. If you have collected any amount from the patient for this level of service/any amount that exceeds the limiting charge for the less extensive service, the law requires you to refund that amount to the patient within 30 days of receiving this notice. The requirements for refund are in 1824(I) of the Social Security Act and 42CFR411.408. The section specifies that physicians who knowingly and willfully fail to make appropriate refunds may be subject to civil monetary penalties and/or exclusion from the program. If you have any questions about this notice, please contact this office.
RARCN29Missing documentation/orders/notes/summary/report/chart.Send the requested documentation through the payer's preferred channel and reference the claim number. Track the submission so it can be proven later.
RARCN386This decision was based on a National Coverage Determination (NCD). An NCD provides a coverage determination as to whether a particular item or service is covered. Visit CMS.gov and search for Medicare Coverage Database to find a copy of the policy.Review the cited NCD. If the service meets the NCD conditions, appeal with documentation showing each condition is satisfied.

Priority 3

Payer-specific nuance

How major payers handle this denial — what AR Guide has verified, and what you must confirm with the payer. We never publish payer handling we have not verified.

Medicare