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M114 Remark Code: Competitive Bidding or Demo Rules Applied

M114 means the service was processed under the rules of the Medicare DMEPOS Competitive Bidding Program or a demonstration project. The official text directs you to your local contractor for details about the program.

Quick facts

Code
M114 (RARC M114)
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 adjustment or denial under program rules is the supplier's responsibility unless corrected.
  • PR (Patient Responsibility): Patient cost-sharing is calculated under the program's payment rules.
Official description
This service was processed in accordance with rules and guidelines under the DMEPOS Competitive Bidding Program or a Demonstration Project. For more information regarding these projects, contact your local contractor.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What M114 means

M114 is a general notice for durable medical equipment, prosthetics, orthotics, and supplies claims. It tells you the payer handled the service under the rules of the DMEPOS Competitive Bidding Program or a demonstration project. Those rules can change the payment amount, limit which suppliers may be paid, or add requirements that do not apply to ordinary fee schedule claims.

Unlike the more specific remarks in this family, M114 does not tell you exactly which rule was applied. Look at the other codes on the line for that detail.

When you see it

  • The patient lives in a competitive bidding area and the item is in a program product category.
  • The service is part of a demonstration project in the patient’s area.
  • Program pricing or supplier eligibility rules affected the result.

What to do

  1. Read the CARC and other remarks to see the outcome and specific reason.
  2. Check whether the item and area are in the program for the date of service.
  3. Confirm your supplier status for the product category and area.
  4. Contact your local contractor if the outcome is unclear, as the remark suggests.
  5. Correct and resubmit only if a data error, such as the patient’s address or item code, caused the wrong rules to apply.

How to prevent surprises

  • Maintain a list of program product categories and areas where you are or are not a contract supplier.
  • Verify the patient’s permanent residence at intake.
  • See provider enrollment and network status for supplier eligibility issues.

Codes that may appear with M114

  • CO-45 (Charge exceeds fee schedule/maximum allowable or contracted/legislated fee arrangement.): The amount was reduced to the program's payment amount.
  • 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 furnish this item under the program on that 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…): Specifically states the single payment amount for the patient's area was used.
  • M115 (This item is denied when provided to this patient by a non-contract or non-demonstration supplier.): Specifically denies an item furnished by a non-contract or non-demonstration supplier.
  • M116 (Processed under a demonstration project or program.): Tells you a demonstration project or program is ending.

M114 FAQ

Is M114 good or bad news?

It is neutral. It explains which rules were used. Read the CARC to see whether the line was paid, reduced, or denied.

Where do I get details about the program?

The official text refers you to your local contractor. Program rules, product categories, and areas are also published by CMS.

Does M114 apply outside Medicare?

It is written for Medicare's competitive bidding and demonstration programs, but other payers may use it if they run similar programs.