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MLN Matters. . .Information for Medicare Providers
(Issued by the Centers for Medicare & Medicaid Services)

   
MM5800 Remittance Advice Remark Code (RARC) and Claim Adjustment Reason Code (CARC) Update

MLN Matters Number: MM5800

Related Change Request (CR) #: 5800

Related CR Release Date: November 30, 2007

Effective Date: January 1, 2008

Related CR Transmittal #: R1384CP

Implementation Date: January 7, 2008

Provider Types Affected

Physicians, providers, and suppliers who submit claims to Medicare contractors (carriers, fiscal intermediaries (FI), regional home health intermediaries (RHHI), Part A/B Medicare Administrative Contractors (A/B MAC), and Durable Medical Equipment Medicare Administrative Contractors (DME MAC)) for services

Impact on Providers

CR 5800, from which this article is taken, announces the latest update of Remittance Advice Remark Codes used in electronic and paper remittance advice and Claim Adjustment Reason Codes used in electronic and paper remittance advice and coordination of benefits (COB) claim transactions. These changes will be effective January 1, 2008. Be sure billing staff are aware of these changes.

Background

Two code sets—the reason and remark code sets—must be used to report payment adjustments in remittance advice transactions. The reason codes are also used in some coordination-of-benefits transactions.

The remittance advice remark code list is maintained by the Centers for Medicare & Medicaid Service (CMS), and used by all payers; and additions, deactivations, and modifications to it may be initiated by both Medicare and non-Medicare entities. The health care claim adjustment reason code list is maintained by a national Code Maintenance committee that meets when X12 meets for their trimester meetings to make decisions about additions, modifications, and retirement of existing reason codes.

Both code lists are updated three times a year, and are posted at http://wpc-edi.com/codesexternal on the Internet. The lists at the end of this article summarize the latest changes to the remark code lists, as announced in CR 5800, effective on January 1, 2008. As a reminder, CMS notes that the claim adjustment reason code of A2 (Contractual adjustment) is deactivated effective January 1, 2008.

CMS has developed a new website to help navigate the RARC database more easily. A tool is provided to help search if you are looking for a specific category of code. At this site, you can find some other information that is also available from the Washington Publishing Company (WPC) Web site. The new Web site address is http://www.cmsremarkcodes.info/external on the Internet.

Note that this Web site does not replace the Washington Publishing Company (WPC) site and, should there be any discrepancies between this site and the WPC site, consider the WPC site to be correct.

Additional Information

You may see the official instruction (CR5800) issued to your Medicare Carrier, A/B MAC, FI, DME MAC or RHHI by going to http://www.cms.hhs.gov/Transmittals/downloads/R1384CP.pdfexternal pdf on the CMS Web site.

If you have questions, please contact your Medicare A/B MAC, carrier, FI, DME MAC or RHHI at their toll-free number which may be found at: http://www.cms.hhs.gov/MLNProducts/downloads/CallCenterTollNumDirectory.zipzip on the CMS Web site.

For additional information about Remittance Advice, please refer to Understanding the Remittance Advice (RA): A Guide for Medicare Providers, Physicians, Suppliers, and Billers at: http://www.cms.hhs.gov/MLNProducts/downloads/RA_Guide_Full_03-22-06.pdfexternal pdf on the CMS Web site.

Remittance Advice Remark Code Changes

New Codes

Code

Current Narrative

Comment

N388

Missing/incomplete/invalid prescription number. Note: (New Code 8/1/07)

Medicare initiated

N389

Duplicate prescription number submitted. Note: (New Code 8/1/07)

Medicare initiated

N390

This service cannot be billed separately. Note: (New Code 8/1/07)

Medicare initiated

N391

Missing emergency department records. Note: (New Code 8/1/07)

Not Medicare initiated

N392

Incomplete/invalid emergency department records. Note: (New Code 8/1/07)

Not Medicare initiated

N393

Missing progress notes or report. Note: (New Code 8/1/07)

Not Medicare initiated

N394

Incomplete/invalid progress notes or report. Note: (New Code 8/1/07)

Not Medicare initiated

N395

Missing laboratory report. Note: (New Code 8/1/07)

Not Medicare initiated

N396

Incomplete/invalid laboratory report. Note: (New Code 8/1/07)

Not Medicare initiated

N397

Benefits are not available for incomplete service(s)/undelivered item(s). Note: (New Code 8/1/07)

Not Medicare initiated

N398

Missing elective consent form. Note: (New Code 8/1/07)

Not Medicare initiated

N399

Incomplete/invalid elective consent form. Note: (New Code 8/1/07)

Not Medicare initiated

N400

Alert: Electronically enabled providers should submit claims electronically. Note: (New Code 8/1/07)

Not Medicare initiated

N401

Missing periodontal charting.

Not Medicare initiated

Note: (New Code 8/1/07)

N402

Incomplete/invalid periodontal charting. Note: (New Code 8/1/07)

Not Medicare initiated

N403

Missing facility certification. Note: (New Code 8/1/07)

Not Medicare initiated

N404

Incomplete/invalid facility certification. Note: (New Code 8/1/07)

Not Medicare initiated

N405

This service is only covered when the donor's insurer(s) do not provide coverage for the service. Note: (New Code 8/1/07)

Not Medicare initiated

N406

This service is only covered when the recipient's insurer(s) do not provide coverage for the service. Note: (New Code 8/1/07)

Not Medicare initiated

N407

You are not an approved submitter for this transmission format. Note: (New Code 8/1/07)

Medicare Initiated

N408

This payer does not cover deductibles assessed by a previous payer. Note: (New Code 8/1/07)

Not Medicare initiated

N409

This service is related to an accidental injury and is not covered unless provided within a specific time frame from the date of the accident. Note: (New Code 8/1/07)

Not Medicare initiated

N410

This is not covered unless the prescription changes. Note: (New Code 8/1/07)

Not Medicare initiated

N411

This service is allowed one time in a 6-month period. (This temporary code will be deactivated on 2/1/09. Must be used with Reason Code 119.) Note: (New Code 8/1/07)

Not Medicare initiated

N412

This service is allowed 2 times in a 12-month period. (This temporary code will be deactivated on 2/1/09. Must be used with Reason Code 119.) Note: (New Code 8/1/07)

Not Medicare initiated

N413

This service is allowed 2 times in a benefit year. (This temporary code will be deactivated on 2/1/09. Must be used with Reason Code 119.) Note: (New Code 8/1/07)

Not Medicare initiated

N414

This service is allowed 4 times in a 12-month period. (This temporary code will be deactivated on 2/1/09. Must be used with Reason Code 119.) Note: (New Code 8/1/07)

Not Medicare initiated

N415

This service is allowed 1 time in an 18-month period. (This temporary code will be deactivated on 2/1/09. Must be used with Reason Code 119.) Note: (New Code 8/1/07)

Not Medicare initiated

N416

This service is allowed 1 time in a 3-year period. (This temporary code will be deactivated on 2/1/09. Must be used with Reason Code 119.) Note: (New Code 8/1/07)

Not Medicare initiated

N417

This service is allowed 1 time in a 5-year period. (This temporary code will be deactivated on 2/1/09. Must be used with Reason Code 119.) Note: (New Code 8/1/07)

Not Medicare initiated

N418

Misrouted claim. See the payer's claim submission instructions. Note: (New Code 8/1/07)

Not Medicare initiated

N419

Claim payment was the result of a payer's retroactive adjustment due to a retroactive rate change. Note: (New Code 8/1/07)

Not Medicare initiated

N420

Claim payment was the result of a payer's retroactive adjustment due to a Coordination of Benefits or Third Party Liability Recovery. Note: (New Code 8/1/07)

Not Medicare initiated

N421

Claim payment was the result of a payer's retroactive adjustment due to a Peer Review Organization decision. Note: (New Code 8/1/07)

Not Medicare initiated

N422

Claim payment was the result of a payer's retroactive adjustment due to a payer's contract incentive program. Note: (New Code 8/1/07)

Not Medicare initiated

N423

Claim payment was the result of a payer's retroactive adjustment due to a non standard program. Note: (New Code 8/1/07)

Not Medicare initiated

N424

Patient does not reside in the geographic area required for this type of payment. Note: (New Code 8/1/07)

Medicare initiated

N425

Statutorily excluded service(s).Note: (New Code 8/1/07)

Medicare initiated

N426

No coverage when self-administered. Note: (New Code 8/1/07)

Medicare initiated

N427

Payment for eyeglasses or contact lenses can be made only after cataract surgery. Note: (New Code 8/1/07)

Medicare initiated

N428

Service/procedure not covered when performed in this place of service. Note: (New Code 8/1/07)

Medicare initiated

N429

This is not covered since it is considered routine. Note: (New Code 8/1/07)

Medicare initiated

* NOTE: Some remark codes may provide only information. They may not necessarily supplement the explanation provided through a reason code, or, in some cases another/other remark code(s), for an adjustment. Codes that are informational will have “Alert” in the text to identify them as informational rather than explanatory codes. For example, this informational code is sent per state regulation, but does not explain any adjustment:

N369 Alert: Although this claim has been processed, it is deficient according to state legislation/regulation.

These informational codes will be used only if specific information needs to be communicated but not as default codes

Modified Codes

Code

Current Modified Narrative

Comment

M27

Alert: The patient has been relieved of liability of payment of these items and services under the limitation of liability provision of the law. The provider is ultimately liable for the patient's waived charges, including any charges for coinsurance, since the items or services were not reasonable and necessary or constituted custodial care, and you knew or could reasonably have been expected to know, that they were not covered. You may appeal this determination. You may ask for an appeal regarding both the coverage determination and the issue of whether you exercised due care. The appeal request must be filed within 120 days of the date you receive this notice. You must make the request through this office.

Modified 10/1/02, 8/1/05, 4/1/07, 8/1/07

M70

Alert: The patient is a member of an employer-sponsored prepaid health plan. Services from outside that health plan are not covered. However, as you were not previously notified of this, we are paying this time. In the future, we will not pay you for non-plan services.

Modified 4/1/07, 8/1/07

MA14

Alert: The patient is a member of an employer-sponsored prepaid health plan. Services from outside that health plan are not covered. However, as you were not previously notified of this, we are paying this time. In the future, we will not pay you for non-plan services.

Modified 4/1/07, 8/1/07

M62

Alert: This is a telephone review decision.

Modified 4/1/07, 8/1/07

N12

Policy provides coverage supplemental to Medicare. As the member does not appear to be enrolled in the applicable part of Medicare, the member is responsible for payment of the portion of the charge that would have been covered by Medicare.)

Modified 8/1/07

N84

Alert: Further installment payments are forthcoming.

Modified 4/1/07, 8/1/07

N85

Alert: This is the final installment payment.

Modified 4/1/07, 8/1/07

N129

Not eligible due to the patient's age.

New Code 10/31/02, Modified 8/1/07

Disclaimer
This article was prepared as a service to the public and is not intended to grant rights or impose obligations. This article may contain references or links to statutes, regulations, or other policy materials. The information provided is only intended to be a general summary. It is not intended to take the place of either the written law or regulations. We encourage readers to review the specific statutes, regulations and other interpretive materials for a full and accurate statement of their contents.

News Flash - It's seasonal flu time again! If you have Medicare patients who haven't yet received their flu shot, you can help them reduce their risk of contracting the seasonal flu and potential complications by recommending an annual influenza and a one - time pneumococcal vaccination. Medicare provides coverage for flu and pneumococcal vaccines and their administration. -And don't forget to immunize yourself and your staff . Protect yourself, your patients, and your family and friends. Get Your Flu Shot-Not the Flu! Remember - Influenza vaccination is a covered Part B benefit but the influenza vaccine is NOT a Part D covered drug. Health care professionals and their staff can learn more about Medicare's coverage of adult immunizations and related provider education resources, by reviewing Special Edition MLN Matters article SE0748 http://www.cms.hhs.gov/MLNMattersArticles/downloads/SE0748.pdfexternal pdf on the CMS Web site .

Posted: 12/07/2007


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