N71Remark Code (RARC)Active
N71 Remark Code - Claim Assignment Requirement Explained
The N71 remark code indicates that an unassigned claim for certain services was processed as an assigned claim. This means that the provider is legally required to accept assignment for drugs, biologicals, clinical diagnostic laboratory services, or ambulance services.
How It Relates to the Denial
N71 typically accompanies adjustment reason codes related to claim assignment issues, signaling that the claim was not processed according to the expected assignment status. It serves to clarify the adjustment made by the accompanying reason code.
Common Scenarios
1A provider submitted an unassigned claim for a clinical diagnostic laboratory service, but the remittance shows an adjustment that indicates it was processed as an assigned claim.
→ The N71 remark code points out that the claim was incorrectly categorized and emphasizes the provider's obligation to accept assignment for this type of service.
2An ambulance service claim was submitted without an assignment of benefits, but the payer processed it as if the provider accepted assignment, leading to a payment reduction.
→ Here, the N71 remark code clarifies that the provider is required by law to accept assignment for ambulance services, thus explaining the payer's action.
3A drug claim was billed as unassigned, yet the remittance advice reflects an adjustment indicating it was processed as assigned.
→ In this case, the N71 remark code indicates the claim was handled incorrectly, reinforcing that assignment acceptance is mandatory for drug claims.
What to Do
- Review the assignment status of the claim in question and ensure it aligns with the payer's requirements.
- If the claim was indeed unassigned, consider whether any legal obligations to accept assignment were met.
- Do not resubmit the claim without addressing the assignment issue, as this remark indicates a legal requirement.
What to Check
- The claim submission documentation to verify the assignment status indicated by the provider.
- The payer's policy regarding assignment for the specific services billed, including drugs and laboratory services.
- The remittance advice for the adjustment reason code that accompanies the N71 remark code to understand the context of the adjustment.