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M112 Remark Code: Competitive Bidding Single Payment

M112 means reimbursement for the item is based on the single payment amount set under the Medicare DMEPOS Competitive Bidding Program for the area where the patient lives, rather than the regular fee schedule.

Quick facts

Code
M112 (RARC M112)
Status
Active In use since January 1, 1997; last modified November 5, 2007.
Code set
Remittance Advice Remark Codes (RARC)
Group codes
  • CO (Contractual Obligation): The difference between your charge and the single payment amount is a contractual adjustment.
  • PR (Patient Responsibility): Deductible and coinsurance are calculated from the single payment amount.
Official description
Reimbursement for this item is based on the single payment amount required under the DMEPOS Competitive Bidding Program for the area where the patient resides.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What M112 means

Under the Medicare DMEPOS Competitive Bidding Program, suppliers bid to furnish certain items in defined geographic areas, and Medicare sets a single payment amount for each item in each area. When a beneficiary who lives in a competitive bidding area receives a covered item, payment is based on that single payment amount rather than the standard fee schedule.

M112 tells you this is how your line was priced. The rate depends on the patient’s area of residence, which may differ from your business location.

When you see it

  • The patient’s permanent address is in a competitive bidding area.
  • The item falls within a product category included in the program for the contract period.
  • The claim is assigned and processed under program rules.

What to do

  1. Look up the single payment amount for the item and the patient’s area for the date of service.
  2. Compare it with the allowed amount on the remittance.
  3. Post the difference as a contractual adjustment and collect the patient’s cost-sharing.
  4. If the rate or area looks wrong, confirm the patient’s address and contact the contractor.

How to avoid surprises

  • Capture the beneficiary’s permanent residence, not a temporary address, at intake.
  • Load single payment amounts into your billing system for each area you serve.
  • Monitor DME allowed amounts with an ERA Analyzer so rate changes between contract periods are noticed quickly.

Codes that may appear with M112

  • CO-45 (Charge exceeds fee schedule/maximum allowable or contracted/legislated fee arrangement.): The charge was reduced to the single payment amount.
  • PR-2 (Coinsurance Amount): Coinsurance was based on the single payment amount.
  • M114 (This service was processed in accordance with rules and guidelines under the DMEPOS Competitive Bidding Program or a Demonstration Project.): A general notice that competitive bidding or demonstration rules applied.
  • M115 (This item is denied when provided to this patient by a non-contract or non-demonstration supplier.): Denial because the supplier is not a contract supplier for the item.
  • M113 (Our records indicate that this patient began using this item/service prior to the current contract period for the DMEPOS Competitive Bidding Program.): The patient began using the item before the current contract period.

M112 FAQ

Why is the patient's residence used instead of my location?

Competitive bidding areas are defined by where the beneficiary lives, so the single payment amount for that area applies regardless of where the supplier is located.

Is M112 a denial?

No. The item was paid; M112 explains which rate was used.

What if the patient's address is wrong?

An incorrect address can put the patient in the wrong area. Confirm the permanent residence and correct it with the payer if needed.