M2Remark Code (RARC)Active
Effective 01/01/1997

M2 Remark Code - Not Paid Separately for Inpatients

The M2 remark code indicates that the claim was not paid separately because the patient was an inpatient at the time of service. This suggests that the billed service is typically included in the overall inpatient care and not reimbursed as a separate line item.

How It Relates to the Denial

The M2 remark code typically accompanies Claim Adjustment Reason Codes that indicate a denial or adjustment for services related to inpatient stays. This combination signals that the service is bundled into the inpatient care and thus not eligible for separate payment.

Common Scenarios

1A hospital bills for a routine lab test performed on a patient admitted for surgery, and the remittance shows the M2 remark code alongside a denial reason code.
→ In this case, the M2 remark code clarifies that the lab test is not eligible for separate payment due to the patient's inpatient status.
2A facility submits a claim for physical therapy provided to an inpatient, and the remittance reflects the M2 remark code with a corresponding adjustment reason code for inpatient services.
→ The M2 remark code indicates that the physical therapy is considered part of the inpatient care package and will not be reimbursed separately.
3A claim for a diagnostic imaging service is submitted for a patient who is hospitalized, and the remittance response includes the M2 remark code.
→ Here, the M2 remark code suggests that the imaging service is included in the inpatient stay and therefore not paid separately.

What to Do

  1. Review the services billed to ensure they align with inpatient care guidelines.
  2. Do not appeal the claim unless further documentation suggests separate payment is warranted.
  3. Confirm that the services billed are typically bundled with inpatient care.

What to Check

  • The patient's admission status and dates to verify inpatient status.
  • The payer's policies on bundled services for inpatient care.
  • The claim adjustment reason code that accompanies the M2 remark code to understand the denial context.