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M124 Remark Code: Equipment Ownership Not Indicated

M124 means the claim for a part or supply did not indicate whether the patient owns the equipment that requires it. Payers need that to decide if the part is billable separately or included in a rental payment.

Quick facts

Code
M124 (RARC M124)
Status
Active In use since January 1, 1997; last modified February 28, 2003.
Code set
Remittance Advice Remark Codes (RARC)
Group codes
  • CO (Contractual Obligation): The part or supply was not paid because required information was missing. The supplier corrects and resubmits.
Official description
Missing indication of whether the patient owns the equipment that requires the part or supply.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What M124 means

Whether a DME supply or replacement part is separately payable often depends on who owns the base equipment. If the payer is still renting the equipment to the patient, supplies and repairs are usually included in the rental payment. If the patient owns it, the supplier can typically bill supplies and parts separately.

M124 tells you the claim did not answer that question. Without the ownership indication, the payer cannot decide how to process the part or supply, so it is typically rejected as missing information.

Common causes

  • Supply claims submitted without the narrative or field that states patient ownership.
  • A patient who purchased equipment privately or through another payer, and the supplier did not note it.
  • Billing systems that do not carry ownership information from the equipment record to supply claims.
  • A switch of suppliers, where the new supplier does not know the equipment’s history.

How to fix it

  1. Confirm ownership with the patient and any earlier supplier: was the base equipment purchased, or has a capped rental converted to ownership?
  2. Add the ownership indication in the field or narrative required by the payer.
  3. Include related details if requested, such as the date the equipment was acquired.
  4. Resubmit, using frequency code 7 if the original claim was adjudicated.

How to prevent it

  • Store ownership status on each patient equipment record and pull it into supply and repair claims automatically.
  • Ask about ownership at intake for patients who bring their own equipment.
  • Use a Claims Validator rule to require the ownership indicator on applicable supply codes.

Codes that may appear with M124

  • CO-16 (Claim/service lacks information or has submission/billing error(s).): The claim lacks information, identified by M124 as the ownership indicator.
  • CO-97 (The benefit for this service is included in the payment/allowance for another service/procedure that has already been adjudicated.): If the equipment is rented, supplies and parts may be included in the rental payment.
  • N230 (Incomplete/invalid indication of whether the patient owns the equipment that requires the part or supply.): The ownership indicator was sent but was incomplete or invalid, rather than missing.
  • M3 (Equipment is the same or similar to equipment already being used.): Equipment is the same as or similar to equipment already in use.

M124 FAQ

Why does ownership matter for supplies?

For many rented items, the monthly rental payment covers supplies and accessories. When the patient owns the equipment, those parts and supplies may be billed separately.

How do I indicate ownership?

Payers usually want a narrative or specific claim field stating that the patient owns the base equipment, sometimes with the date purchased. Follow the DME contractor's instructions.

What if the patient owns equipment bought before enrolling with the payer?

State that the patient owns it. The payer may ask for details such as when and how it was acquired.