N781Remark Code (RARC)ActiveInformational Alert
N781 Remark Code - Medicaid Alert for Deductible Review
The N781 remark code indicates that the patient is a Medicaid or Qualified Medicare Beneficiary. It prompts the provider to review their records for any deductible that may have been incorrectly collected from the patient, as this amount can potentially be billed to a subsequent payer.
What This Alert Tells You
The N781 alert typically appears in remittance advice without accompanying adjustment or denial codes. It serves as a reminder to verify the patient's status and billing practices related to their deductible collection.
Common Scenarios
1A provider receives an 835 remittance indicating a payment for a service rendered to a patient identified as a Medicaid beneficiary.
→ The N781 remark suggests that the provider should ensure that no deductible was improperly collected from the patient, given their Medicaid status.
2After billing a service, a practice sees the N781 alert on their remittance advice for a patient who is a Qualified Medicare Beneficiary.
→ This alert indicates that the practice may have mistakenly charged a deductible and should check their records to confirm the correct billing practices.
3A provider notices the N781 alert after submitting a claim for a patient who qualifies for both Medicaid and Medicare.
→ The N781 remark serves as a notification to the provider to assess if any deductible was collected in error, as it can be billed to another payer.
What to Do
- Review patient records for any deductible amounts collected from the patient.
- Verify the patient's Medicaid or Qualified Medicare Beneficiary status to ensure compliance with billing regulations.
- Consider billing the deductible amount to a subsequent payer if it was wrongfully collected.
What to Check
- Patient eligibility documentation to confirm Medicaid or Qualified Medicare Beneficiary status.
- Billing records for any deductible amounts collected from the patient.
- Previous claims submitted for the patient to identify any billing errors related to deductibles.