N518Remark Code (RARC)Active
Effective 03/01/2009

N518 Remark Code - No Separate Payment for Accessories

The N518 remark code indicates that there will be no separate payment for accessories provided in conjunction with oxygen equipment. This means that when billing for accessories, the payer does not allow additional reimbursement beyond what is covered for the oxygen equipment itself.

How It Relates to the Denial

The N518 remark code typically accompanies a Claim Adjustment Reason Code (CARC) that indicates an adjustment for services related to oxygen therapy. Together, these codes signal that the payer has determined that the accessories are bundled into the payment for the primary oxygen equipment.

Common Scenarios

1A provider submits a claim for oxygen equipment along with related accessories like tubing and masks, expecting separate payments for both. The remittance advises a reduction in payment, including the N518 remark.
→ The N518 code clarifies that the payer does not reimburse for the accessories because they are considered part of the overall oxygen therapy service.
2A facility bills for a patient receiving home oxygen therapy, including an invoice for an oxygen concentrator and additional accessories. The remittance response includes a CARC indicating a payment adjustment and the N518 remark.
→ In this case, the N518 remark reinforces that no extra payment will be provided for the accessories, as they are bundled with the oxygen equipment.
3A healthcare provider provides a patient with oxygen equipment and submits a claim that includes charges for associated accessories. The payer's remittance shows an adjustment with the N518 remark attached.
→ The remark indicates that the accessories will not receive separate payment, aligning with the payer’s policy on bundled services.

What to Do

  1. Review the claim details to ensure that all billed items comply with the payer's bundling policy.
  2. If necessary, adjust future claims to reflect that accessories will not be reimbursed separately from the oxygen equipment.

What to Check

  • The claim submission details for the oxygen equipment and accessories.
  • The payer's policy on bundled services for oxygen therapy.
  • The accompanying reason code to understand the full context of the adjustment.