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The Work Genie Brief · Issue 1, November 2026

The October 1 code update: which worklist rules it breaks, and the November cycle to watch

Short answer: CR 14492 loaded the July 1, 2026 X12 lists for dates of service from October 1; eighteen new remark codes, five that change where a denial goes; four deactivated CARCs still in old routing rules; and the 30-minute diff to run before the November list.
CR 14492 · Transmittal 13791 N923 to N940 · start Jul 1, 2026 CARC 15, 138, 165, 168 · stopped 2018 Next X12 list · about Nov 1

October 27, 20265 min readASP-RCM Solutions

Edition
Issue 1 · Nov 2026
Focus
CARC and RARC update
Codes
N923 to N940
Framework
CR 14492 · TR 13791
Effective date
Oct 1, 2026
Length
5 min read
Oct 1, 2026
CARC and RARC update effective, by date of service [1]
18new RARCs
N923 to N940, start July 1, 2026 [3]
May 1, 2018
Stop date on CARCs 15, 138, 165 and 168 [2]
3per year
Code updates, about March 1, July 1, November 1 [1]
Story 1

CR 14492 and the October 1 effective date

Transmittal 13791 loads the July 1 X12 lists [1]: new codes on their start dates, modifications on their effective dates, deactivated codes dropped, with two carve-outs that let a dead code land in your 835.

  1. 1
    May 27, 2026CR 14492 issued [1]
  2. 2
    Jul 1, 2026X12 lists the CR loads [1]
  3. 3
    Oct 1, 2026Effective by date of service [1]
  4. 4
    Oct 5, 2026Contractor implementation [1]
  5. 5
    About Nov 1Next X12 list
Carve-out 1
COB claims adjudicated by the primary before deactivation
Carve-out 2
Reversals and corrections forwarded before it
Deactivated codes may still appear
Story 2

Eighteen new remark codes, five that move the line

N923 to N940 by type [3]

Zero CARCs carry a 2026 start date [2].

Dental and imaging attachmentsN927 to N934, N940
950% of the 18
Change where a denied line goesN935 to N939
528%
MA encounter-data responsesN923 to N926
422%
CARCs with a 2026 start date
00%
0369 codes
Attachment and encounter remarksChange routingCARC side, unchanged
Routing rows

Where the line goes now, code by code

Code [3]SaysWhere the line goes now
N938Do not resubmit; claim will be reprocessedHold 30 days, check the reprocessed 835; not rework
N939Peer-to-peer review availableClinical owner, peer-to-peer before written appeal
N937Service line denial threshold exceededPayer escalation task; a pattern, not a line
N936Secondary or tertiary procedure under the Medicare MPPRContract variance check, then close
N935Patient no longer Medicaid or QMBEligibility; re-verify before any statement
N921 March listReconsideration or appeal time limit expiredWrite-off review, reason captured; not the appeal queue
N920 March listPayment on hold during contract renegotiationWhoever owns the contract

CARC 308

New

  • Newest: contracted funding agreement, payer and provider, start November 1, 2025 [2]

CARC 216

Modified

  • Modified March 1, 2025: findings of a review organization or the payer [2]

0 CARCs

Unchanged

  • With a 2026 start date; the change is on the remark side [2]
Story 3

The deactivated codes still in your rules

CARCs 15 (authorization), 138 (appeal procedures), 165 (referral) and 168 (dental plan benefit) stopped May 1, 2018 [2]; rules keyed to them, written from payer manuals, still turn up on books we take over.

  1. 1
    RuleCARC 15 routes to the auth team
  2. 2
    2018Code deactivated [2]
  3. 3
    TodayPayer sends 197
  4. 4
    ResultLine falls to the generic queue
The remedy
A diff, not a rewrite: validate every rule against the X12 dates
Work Genie: 297 CARCs, 1,137 RARCs with dates; rules validated per load

Full code-to-owner map: denial worklist white paper.

ASP update

New: the denial worklist white paper, the clean claim rate guide, our read of the payer prior-auth metrics, and the AR Workflow Engine page.

Takeaway

Export the distinct code combinations from your last 60 days of 835s; diff them against the July 1 X12 lists and your routing rules. Stop-dated codes and new codes with no rule are your list.

One thing worth 30 minutes

Three steps this week

Pull the distinct combinations with denied dollarsMost practice management systems export this in one report.
Mark the gapsCombinations with no routing rule; rules keyed to a stop-dated code.
Write the routing rows from Story 2 into the worklistCalendar the diff for the week after November 1; the free denial audit runs it on your last 90 days.
FAQ

Frequently asked questions

What did CMS CR 14492 change?

It instructs Medicare contractors to load the CARC and RARC lists X12 published on July 1, 2026, effective for dates of service on or after October 1, 2026, implemented October 5, 2026, and to stop reporting deactivated codes except on certain coordination-of-benefits and reversal claims adjudicated before the deactivation.

Which new remark codes affect denial routing?

N938 (do not resubmit, the claim will be reprocessed), N939 (peer-to-peer review available), N937 (service line denial threshold exceeded) and, from the March 2026 list, N921 (reconsideration or appeal time limit expired). Each sends the line to a different owner than a generic denial rule would.

How often should we re-check our worklist rules?

Three times a year, in the week after X12 publishes around March 1, July 1 and November 1. Diff the distinct CARC and RARC pairs in your last 60 days of 835s against the new list and against your routing rules, and retire any rule keyed to a code with a stop date.

Sources
  1. CMS Transmittal 13791, Change Request 14492: Claims Adjustment Reason Code (CARC), Remittance Advice Remark Code (RARC), MREP and PC Print Update (issued May 27, 2026; effective October 1, 2026; implementation October 5, 2026)
  2. X12, Claim Adjustment Reason Codes (official code list, with start, modified and stop dates)
  3. X12, Remittance Advice Remark Codes (official code list, with start, modified and stop dates)

Checked October 25, 2026. Rules change; confirm against the source before relying on them.

Related

Want the diff run on your remittances?

Send 90 days of 835s and we return the distinct code pairs, the rules they break and the denied dollars sitting behind each.