CARC294ReferenceCurrentVerified Aug 15, 2026

CARC 294

Check the remark code — then triage: Note

For less common codes, the accompanying remark code (RARC) is what tells you whether this is a correction, an appeal, a documentation request, or a no-action item.

If you take the wrong path: Working from the CARC alone instead of the CARC + RARC pair is how the wrong path gets chosen.

AR Guide explanation

What it means

Payment was made to the attorney.

AR Guide knowledge

Common denial category

Other

AR Guide knowledge

Most common causes

  • Payment issued to the attorney per arrangement

AR Guide knowledge

Action in your PM/EMR system

In your PM system: open the claim and note the remark code in the account. Triage against the denial guides before choosing a resubmission, appeal, or write-off path.

Illustrative scenario

Real-world example

For uncommon codes, the remark code is the map: read the CARC + RARC together, triage it against the denial guides, and only then choose correct, appeal, or write-off.

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

AR Guide knowledge

What AR should verify

  1. Confirm the payment arrangement

AR Guide knowledge

Recommended action

  1. Reconcile the payment received

Appeal template

No code-specific template yet

No downloadable template targets CARC 294 specifically. Browse all appeal letter templates — or follow the recommended workflow above.

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.

Did this resolve your denial?

Help us keep this accurate

Report an error in this code’s guidance

Spotted something outdated or incorrect in the AR Guide guidance or the official description? Flag it — the report becomes a review item for our team and never changes the published page directly.

Do not include patient/member information or PHI — no patient names, member IDs, claim numbers, dates of birth or clinical information. This tool never stores PHI, and the server rejects it.