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M106 Remark Code (Deactivated): No New Capped Rental

M106 meant the information supplied did not support a break in therapy, so a new DME capped rental period would not begin, and the payment was the maximum approved under the fee schedule. X12 deactivated it and suggested MA31.

X12 deactivated RARCM106 on January 31, 2004. Payers should no longer use it on new remittances, but it can still appear on older ERAs, corrected claims, and appeals.

Code: M106 (RARC M106)
Status: Deactivated StoppedJanuary 31, 2004 (in use since January 1, 1997).
Code set: Remittance Advice Remark Codes (RARC)
Group codes: CO (Contractual Obligation): Accompanied CO adjustments; the supplier could not restart rental payments.
Official description: Information supplied does not support a break in therapy. A new capped rental period will not begin. This is the maximum approved under the fee schedule for this item or service.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified: September 24, 2026 against the official X12 list.

What M106 meant

Capped rental DME is paid monthly for a limited time. If a patient stops using the item and later needs it again, a new rental period can sometimes start. Remark M106 told the supplier the claim did not support such a break, so no new period began, and that the payment already reflected the maximum allowed.

What replaced it

X12’s note suggests MA31, which concerns missing or invalid dates of the period billed. MA31 is active but addresses the dates rather than the break itself. The closer match in wording is the active M94, which says a break in therapy is not supported and a new capped rental period will not begin. When a new period is approved, payers use M93. Rental-rule denials may carry CARC CO-108.

If you still see M106

It appears only in older DME files. For a current claim, gather evidence of the gap in use and the new medical need, confirm the dates billed, and ask the payer to reconsider if the break meets its rules.

MA31 (Missing/incomplete/invalid beginning and ending dates of the period billed.): The code X12's note suggests: missing, incomplete, or invalid beginning and ending dates of the period billed.
M94 (Information supplied does not support a break in therapy.): Information does not support a break in therapy; a new capped rental period will not begin.
M93 (Information supplied supports a break in therapy.): The opposite outcome: a break in therapy is supported and a new rental period began.
CO-108 (Rent/purchase guidelines were not met.): Rent or purchase guidelines were not met.

M106 FAQ

What is a capped rental period?

For certain durable medical equipment, Medicare pays monthly rental for a limited number of months. After that cap, payment stops, though a new period may start after a qualifying break in need.

What counts as a break in therapy?

A period when the patient did not need the item, as defined by the payer's rules, followed by a new medical need. The supplier must document it.

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