CARC Code

5

🟡 Soft Denial

Procedure Code Inconsistent with Place of Service

The service or procedure code you billed does not match the location where the service was provided. For example, billing for a procedure that requires a hospital setting but listing an office as the place of service.

coding
Resolution: 82%Medium difficulty7-14 days avg

How to resolve this denial

✓ Pre-action checklist — verify before contacting the payer
  1. Review the full remittance advice (ERA/EOB) for additional RARC codes that explain the denial.

  2. Verify the claim was submitted with correct patient eligibility and benefit information.

  3. Check if this denial applies to a specific line item or the entire claim.

More about CO-5 — stats, related codes, appeal template

82%

Recovery Rate

7-14 days

Avg. Resolution

Medium

Difficulty

Common

Frequency

Payer-Specific Notes

How major payers handle CARC 5 by specialty.

Aetna

Aetna uses CO-5 when procedure/diagnosis combination fails edit. Check RARC for specific field.

Common 835 Combinations

CARC 5 most often appears with these Group Code + RARC combinations on 835 remittances.

Look up any combination →

Appeal Letter Template

Generic appeal template for CARC 5 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 5 indicating: "The procedure code/bill type is inconsistent with the place of service.." 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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