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MA110 Remark Code: Purchased Test Indicator Missing

MA110 means the claim was missing, or had incomplete or invalid, information on whether diagnostic tests were performed by an outside entity, or a statement that no purchased tests are included. The payer needs this to apply purchased-test rules.

Quick facts

Code
MA110 (RARC MA110)
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 claim was not processed because the purchased-test indicator was missing or invalid. The provider corrects it; the patient is not billed.
Official description
Missing/incomplete/invalid information on whether the diagnostic test(s) were performed by an outside entity or if no purchased tests are included on the claim.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What MA110 means

When a practice bills for diagnostic tests, the payer needs to know whether any of them were purchased from an outside entity. Purchased tests are subject to special payment rules, including limits based on what the practice paid. MA110 says the claim did not provide that answer, or provided it incorrectly. On paper this means item 20 (outside lab) was blank or inconsistent.

It usually accompanies CARC 16.

Common causes

  • Item 20 was left blank on a claim with diagnostic tests.
  • “Yes” was indicated but no purchase price was reported.
  • The billing system did not send the purchased service indicator on the electronic claim.
  • The indicator conflicts with other information, such as a performing supplier in item 32.

How to fix it

  1. Determine whether any tests were purchased from an outside supplier.
  2. Complete item 20 or the electronic equivalent: “no” if all tests were performed in-house, “yes” with the purchase price if not.
  3. Add the performing supplier information when purchased tests are billed.
  4. Resubmit the corrected claim, using resubmission code 7 with the original claim number in item 22 if replacing a processed claim.

How to prevent it

  • Set a default purchased-test indicator for practices that perform all tests in-house.
  • Require purchase price and supplier details whenever tests are purchased.
  • A Claims Validator can flag diagnostic claims with a blank outside-lab indicator. For more on data errors, see CO-16 missing information denials.

Codes that may appear with MA110

  • CO-16 (Claim/service lacks information or has submission/billing error(s).): The claim is missing information needed for adjudication, here the outside lab or purchased test indicator.
  • MA111 (Missing/incomplete/invalid purchase price of the test(s) and/or the performing laboratory's name and address.): The purchase price or performing laboratory's name and address was missing.
  • MA114 (Missing/incomplete/invalid information on where the services were furnished.): Information on where the services were furnished was missing.
  • MA120 (Missing/incomplete/invalid CLIA certification number.): A missing or invalid CLIA number for lab services.

MA110 FAQ

Where is this indicated on the CMS-1500?

Item 20 (outside lab) is used to indicate whether a purchased diagnostic test is included, with the purchase price when the answer is yes.

What is a purchased test?

A diagnostic test that the billing provider buys from an outside supplier and bills for, rather than performing itself. Special payment rules often apply.

Should I check 'no' if all tests were performed in-house?

Yes. The payer expects a clear indication either way.