CARC 173: Service/equipment was not prescribed by a physician.
Service/equipment was not prescribed by a physician.
CARC 173 is the code your insurance company used to explain why your claim was reduced, denied, or paid less than expected. It appears on your Explanation of Benefits (EOB) — the statement your plan sends after a claim is processed. Here's what it means for you and what you can do about it.
What CARC 173 means
The official X12 description is: “Service/equipment was not prescribed by a physician.”
In plain language: Service/equipment was not prescribed by a physician.
What to do next 173
Appeal with documentation specific to this code. The provider's billing office can help clarify what the carrier wants.
DenialHelp drafts the appeal letter for you in about five minutes. We cite the federal appeal-rights regulation that applies to your plan type (ACA §2719, ERISA §503, NSA §2799A, 42 CFR 422 Subpart M, or 42 CFR 438 Subpart F), the insurer's own coverage policy, and the relevant clinical guideline.
CARC 173 group codes explained
On the 835 ERA, CARC 173 appears alongside a group code that signals who is financially responsible for the adjustment. CO (Contractual Obligation) — Contractual write-off. The provider agreed to the rate. Patient does NOT owe this amount.
Frequently asked questions
What does CARC 173 mean?
Service/equipment was not prescribed by a physician. In plain language: Service/equipment was not prescribed by a physician.
Is CARC 173 appealable?
Yes — CARC 173 is one of the codes that commonly supports an appeal. Appeal with documentation specific to this code. The provider's billing office can help clarify what the carrier wants.
Which group code does CARC 173 appear under?
CARC 173 most often appears under: CO (Contractual Obligation) — Contractual write-off. The provider agreed to the rate. Patient does NOT owe this amount.
How do I appeal a CARC 173 denial?
Appeal with documentation specific to this code. The provider's billing office can help clarify what the carrier wants.
Related resources
Sources
Appeal a CARC 173 denial
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