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M113 Remark Code: Item Use Began Before Contract Period

M113 means the payer's records show the patient began using this item or service before the current DMEPOS Competitive Bidding Program contract period. That history can affect which supplier may bill and how the item is paid.

Code: M113 (RARC M113)
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): Any denial or payment adjustment under program transition rules is a supplier write-off unless corrected.
PR (Patient Responsibility): Patient cost-sharing applies to any amount the payer allows.
Official description: Our records indicate that this patient began using this item/service prior to the current contract period for the DMEPOS Competitive Bidding Program.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified: September 24, 2026 against the official X12 list.

What M113 means

The DMEPOS Competitive Bidding Program runs in contract periods. When a new period starts, patients who were already using certain items are handled under transition rules. M113 tells you that the payer’s records show this patient started using the item before the current contract period began.

That history can lead to different outcomes: a non-contract supplier may be allowed to keep furnishing a rental item under grandfathering, or the claim may need to go to a contract supplier. The remark provides the context, and the CARC gives the result.

Common causes

A rental that began under a previous contract period continuing into a new one.
A patient switching suppliers after a contract period started.
An initial date of service reported incorrectly, making the item look older or newer than it is.
A supplier that did not follow grandfathering notification requirements.

What to do

Check the line’s CARC to see whether it paid or denied.
Verify the initial date of service for the rental and compare it to the contract period start.
Review transition rules for the product category and whether your supplier qualified to continue.
If the payer’s dates are wrong, submit delivery records and request correction.
If you cannot continue as supplier, coordinate the transfer to a contract supplier so the patient’s care continues.

How to prevent problems

Record initial rental dates accurately and keep delivery proof.
Review program transition rules before each new contract period.
Confirm supplier status for each item category and area before accepting new or transferred patients.

Codes that may appear with M113

CO-45 (Charge exceeds fee schedule/maximum allowable or contracted/legislated fee arrangement.): Payment was adjusted under program pricing for the continuing rental.
CO-B7 (This provider was not certified/eligible to be paid for this procedure/service on this date of service.): The supplier was not eligible to be paid for this item on this date.

M112 (Reimbursement for this item is based on the single payment amount required under the DMEPOS Competitive Bidding Program for the area where the…): Payment based on the single payment amount for the patient's area.
M115 (This item is denied when provided to this patient by a non-contract or non-demonstration supplier.): Denial because the item was provided by a non-contract supplier.
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 the claim followed competitive bidding or demonstration rules.

M113 FAQ

What is grandfathering in competitive bidding?

It is a transition rule that may let a non-contract supplier continue furnishing certain rental items to a patient who was already receiving them before a contract period started, if the supplier chooses to and meets the requirements.

Is M113 a denial?

Not always. It explains that the patient's start date matters for how the claim was handled. The CARC tells you whether the line was paid.

What if the start date is wrong?

Provide the correct initial date of service with delivery records and ask the contractor to review the history.

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