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July 1 2025 CARC 132 Reporting Reminder

July 1, 2025: Attention All Providers: As a reminder when billing Medicaid secondary and the other insurance reported on the claim reports a Claim Adjustment Reason Code (CARC) 132-Prearranged demonstration project adjustment, the dollar amount associated must be balanced off however the facility deems appropriate. If the CARC 132 is reported the claim will be denied by Michigan Medicaid. This does not apply to Medicare crossover claims.

As an example, if the CARC 132 is representing a payment from the payor, it is suggested that the dollar amount be reported as a primary payment. The CARC 132 is then not required to be reported.