N171Remark Code (RARC)Active
N171 Remark Code - Payment for Repair/Replacement Denied
The N171 remark code indicates that the payment for repair or replacement services is either not covered by the payer or that the costs have exceeded the original purchase price of the item. This remark supplements an adjustment already detailed by an accompanying reason code, clarifying the payer's stance on the payment issue.
How It Relates to the Denial
The N171 remark typically accompanies adjustment reason codes that denote denials for repair or replacement claims. The combination signals that the service billed does not meet coverage criteria or that the billed amount surpasses allowable limits.
Common Scenarios
1A provider submits a claim for the repair of a medical device that was previously purchased. The remittance advises that payment is denied.
→ The appearance of the N171 remark suggests that the repair costs are either not eligible for reimbursement or exceed what the payer considers the purchase price.
2A claim for replacing a piece of equipment is submitted, but the remittance response shows a denial for payment with an adjustment reason code.
→ The N171 remark indicates that the replacement is not covered under the policy or that the billed amount is higher than what was originally paid for the equipment.
3A provider bills for a service involving the repair of a device, and the remittance shows an adjustment indicating a denial with the N171 code.
→ This remark clarifies that the service either falls outside of coverage or the costs are greater than the initial purchase price, as stated in the accompanying reason code.
What to Do
- Review the accompanying reason code for specifics on the denial.
- Verify if the repair or replacement service is covered under the patient's plan.
- Ensure that the billed amount does not exceed the original purchase price for the item.
What to Check
- The plan's coverage policy regarding repairs and replacements.
- The original purchase price documentation for the item in question.
- The claim details to ensure accurate billing and eligibility for the service.