CARC 201 — The patient is responsible for this amount under a legal set-aside arrangement,

CARC 201PR · Patient Responsibility

The patient is responsible for this amount under a legal set-aside arrangement, commonly seen in workers' compensation Medicare Set-Aside cases, rather than the payer.

Common causes: A Medicare Set-Aside or similar structured settlement arrangement designates the patient, or the set-aside fund, as responsible for these costs.
Suggested fix: Bill against the patient's set-aside fund per the arrangement's administrator rather than the standard payer.

Related Patient Responsibility codes

1The billed amount was applied to the patient's plan deductible instead of being paid by the payer.119The patient has used up the maximum benefit allowed for this service within the applicable time period, such as an annual visit limit.167The specific diagnosis code(s) on this claim aren't covered under the patient's plan.177The patient doesn't currently meet the plan's eligibility criteria for this benefit.187This amount was or should be paid from the patient's consumer-directed spending account, such as an HSA or FSA, rather than by the payer.2This portion of the claim represents the patient's coinsurance share, the percentage of the allowed amount they are responsible for under their plan.200The service date falls within a period when the patient's coverage had lapsed.202This charge is for a personal comfort or convenience item or service that isn't covered by the plan.

Frequently asked questions

What does CARC 201 mean?

The patient is responsible for this amount under a legal set-aside arrangement, commonly seen in workers' compensation Medicare Set-Aside cases, rather than the payer.

How do I resolve CARC 201?

Bill against the patient's set-aside fund per the arrangement's administrator rather than the standard payer.

Why does CARC 201 happen?

A Medicare Set-Aside or similar structured settlement arrangement designates the patient, or the set-aside fund, as responsible for these costs.

CARC codes maintained by X12 (x12.org). Descriptions on this site are original reference interpretations. Always verify codes with authoritative sources before making billing decisions.