N195Remark Code (RARC)Active
Effective 02/25/2003

N195 Remark Code - Technical Component Must Be Billed Separately

The N195 remark code indicates that the technical component of a service must be billed separately from the professional component. This means that the payer expects the biller to submit two distinct claims for the technical and professional parts if they are not already separated on the original claim.

How It Relates to the Denial

The N195 code typically accompanies a claim adjustment reason code that denotes a denial or reduction of payment due to bundled services. The combination signals that the payer is enforcing their policy on separate billing for technical and professional components.

Common Scenarios

1A radiology service was billed that included both the technical and interpretation components in a single claim. The remittance returned a denial along with the N195 remark.
→ The N195 remark indicates that the payer requires the technical component of the radiology service to be billed separately from the interpretation component.
2A laboratory test was submitted that included both the processing and the physician's interpretation in one claim line. The claim was partially denied with the N195 remark noted.
→ The N195 remark suggests that the lab test's technical processing should have been billed separately from the interpretation provided by the physician.
3A physical therapy session was billed, but the payer returned a remittance indicating a denial with N195 included, stating the technical component was bundled.
→ The N195 remark means that the payer considers the technical services of the therapy session to require separate billing from the professional services.

What to Do

  1. Prepare separate claims for the technical and professional components if not already done.
  2. Ensure that each component is billed under the appropriate code and modifier, if required.

What to Check

  • Review the original claim to identify whether the technical and professional components were combined.
  • Check the payer's billing guidelines for specific requirements on separate billing of components.
  • Verify the service codes used to ensure they reflect the proper separation of technical and professional services.