M7Remark Code (RARC)Active
M7 Remark Code - No Rental Payments Allowed
The M7 remark code indicates that no rental payments will be processed after the rental item has been purchased, returned, or once the total rental payments equal the item's purchase price. This means that the payer has determined that further rental charges are not allowable under the current circumstances.
How It Relates to the Denial
The M7 remark code typically accompanies Claim Adjustment Reason Codes that relate to rental items, such as those indicating that payment has been denied due to the item being purchased or returned. This combination suggests that the payer is clarifying the reason for the denial of additional rental payments.
Common Scenarios
1A patient was billed for a rental wheelchair, but the remittance indicates a denial for additional rental charges after the patient had purchased the wheelchair.
→ In this scenario, the M7 remark code clarifies that the additional rental charges are not permitted because the item was purchased, which negates further rental fees.
2A billing office submitted a claim for ongoing rental payments for a hospital bed, but the payer returned a remittance showing a denial after the total rental fees reached the bed's purchase price.
→ Here, the M7 remark code explains that no further rental payments will be allowed since the total rental payments have equaled the purchase price of the bed.
3A claim for a rented oxygen concentrator was submitted, but the remittance shows a denial after the item was returned, along with the M7 remark code.
→ The M7 remark indicates that further rental payments are not permissible because the item has already been returned.
What to Do
- Verify if the item in question has been purchased or returned.
- Confirm the total amount of rental payments received against the item's purchase price.
- Check for any agreements or contracts regarding rental terms that may impact this situation.
What to Check
- The original purchase receipt for the rental item.
- The rental agreement terms and conditions.
- The claim history for total rental payments billed and received.