N121Remark Code (RARC)Active
Effective 09/09/2002 · Updated 08/01/2004

N121 Remark Code - Medicare Part B SNF Denial

The N121 remark code indicates that Medicare Part B will not reimburse for services rendered by certain practitioners during a beneficiary's stay in a Skilled Nursing Facility (SNF) covered by Medicare Part A. This code serves to clarify that the claim has been adjusted based on the service provider's type and the patient's coverage situation.

How It Relates to the Denial

The N121 remark code typically accompanies a Claim Adjustment Reason Code that indicates a denial or adjustment related to services provided during a Medicare Part A covered SNF stay. Together, they signal that the service in question is not eligible for reimbursement under the Medicare Part B program due to the specific circumstances of the patient's care.

Common Scenarios

1A physical therapist submitted a claim for therapy services provided to a Medicare beneficiary who was in a Skilled Nursing Facility covered by Medicare Part A. The remittance came back with a denial adjustment.
→ The presence of the N121 remark code indicates that the claim was denied because the services provided by the physical therapist are not covered under Medicare Part B during this specific SNF stay.
2A nurse practitioner billed for evaluation and management services for a patient residing in a Skilled Nursing Facility, and the remittance response included a denial with the N121 code.
→ The N121 remark code suggests that the nurse practitioner's services are not payable by Medicare Part B while the patient is in a SNF that is covered by Medicare Part A.
3An occupational therapist's claim for rehabilitation services was submitted while the patient was in a Skilled Nursing Facility. The claim was returned with an adjustment and the N121 remark.
→ The N121 remark indicates that the adjustment was made because Medicare Part B does not cover the occupational therapy services provided during the beneficiary's stay in the SNF.

What to Do

  1. Review the type of practitioner who provided the services.
  2. Confirm the patient’s Medicare coverage status and the nature of their stay in the Skilled Nursing Facility.
  3. Do not resubmit the claim unless the service provided is eligible for reimbursement under different circumstances.

What to Check

  • The patient’s eligibility for Medicare Part B during their SNF stay.
  • The service provider's qualifications and whether they are covered under Medicare Part B.
  • The specific details of the claim adjustment reason code associated with the N121 remark.