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MA124 Remark Code (Deactivated): Processed for IME Only

MA124 meant the claim was processed only for the indirect medical education (IME) adjustment. X12 deactivated it and suggested reason code 74, the indirect medical education adjustment.

X12 deactivated RARCMA124 on January 31, 2004. Payers should no longer use it on new remittances, but it can still appear on older ERAs, corrected claims, and appeals.

Code: MA124 (RARC MA124)
Status: Deactivated StoppedJanuary 31, 2004 (in use since January 1, 1997).
Code set: Remittance Advice Remark Codes (RARC)
Group codes: CO (Contractual Obligation): An institutional payment matter between payer and hospital, not a patient liability.
Official description: Processed for IME only.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified: September 24, 2026 against the official X12 list.

What MA124 meant

Remark MA124 was for teaching hospitals. It said the claim had been processed only to calculate the indirect medical education add-on payment, not for the stay as a whole. The rest of the stay’s payment was handled elsewhere.

What replaced it

X12’s note suggested reason code 74. CO-74 is the active indirect medical education adjustment and reports the amount directly. Related institutional add-on codes include CO-75 for direct medical education and CO-76 for disproportionate share.

If you still see MA124

It only appears in older hospital remittances. When reconciling historical IME payments, match MA124 claims to the corresponding stays and confirm the IME amount. For current claims, use the CARC 74 amounts in your teaching hospital reimbursement reports.

CO-74 (Indirect Medical Education Adjustment.): The suggested replacement: indirect medical education adjustment.
CO-75 (Direct Medical Education Adjustment.): Direct medical education adjustment.
CO-76 (Disproportionate Share Adjustment.): Disproportionate share adjustment, another add-on institutional payment.

MA124 FAQ

What is indirect medical education?

An add-on payment Medicare makes to teaching hospitals to reflect the higher costs associated with training residents. It is separate from the base payment for the stay.

Why would a claim be processed for IME only?

In certain situations, such as some Medicare managed care stays, a teaching hospital could submit a claim so Medicare could pay the IME portion even though another entity paid for the stay itself.

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