N408Remark Code (RARC)Active
N408 Remark Code - No Coverage for Previous Deductibles
The N408 remark code indicates that the payer does not provide coverage for deductibles that were assessed by a previous payer. This means that any deductible amount applied by the prior payer will not be paid by this payer, and the responsibility remains with the patient or the provider.
How It Relates to the Denial
The N408 remark code typically accompanies adjustment reason codes that indicate a denial or reduction related to deductible amounts. This combination signals that the deductible in question was applied by another insurance provider, and the current payer will not assume responsibility for it.
Common Scenarios
1A provider submitted a claim for a surgical procedure and received an adjustment showing a deduction for a deductible amount from a prior insurer.
→ In this case, the N408 remark code clarifies that the current payer is not responsible for covering the deductible previously assessed, reinforcing the adjustment made for the claim.
2A claim for outpatient services was denied with a reason code indicating that a deductible was not met, and the remittance included the N408 remark.
→ This indicates that the deductible was assessed by another payer, and the current payer will not cover that amount, meaning the patient or provider is liable for the deductible.
3A claim for a diagnostic test was submitted, and the remittance response included an adjustment for a deductible previously applied by another insurer, along with the N408 remark.
→ The N408 remark informs the provider that the payer is not covering the deductible assessed by the previous payer, and thus, the adjustment reflects that non-coverage.
What to Do
- Communicate with the patient about their responsibility for the deductible amount.
- Ensure that the previous payer's deductible has been properly documented in the patient's record.
- Review the claim to confirm that the deductible being referenced was indeed assessed by a prior payer.
What to Check
- The explanation of benefits (EOB) from the previous payer for deductible details.
- The claim history for any previous adjustments related to deductibles.
- The patient’s insurance policy for coverage details regarding deductibles.