N842Remark Code (RARC)ActiveInformational Alert
Effective 03/01/2021

N842 Remark Code: Patient Cannot Be Billed

The N842 remark code indicates that the patient cannot be billed for the charges associated with the service provided. This alert serves as a notification to the billing office that the charges should not be passed on to the patient under current circumstances.

What This Alert Tells You

The N842 alert is informational and is not tied to any adjustments or specific reason codes. It simply highlights a billing limitation regarding patient responsibility for the charges.

Common Scenarios

1A claim for a routine check-up was submitted, and the N842 remark code appears on the remittance advice.
→ In this case, the N842 alert informs the billing office that the patient should not receive a bill for the services rendered, likely due to insurance policy provisions or contractual agreements.
2A patient received a service that is covered 100% by their insurance, and the N842 remark is included in the ERA.
→ Here, the N842 alert indicates that no patient billing is permitted because the service is fully covered, signaling that the claim was processed correctly without any patient financial responsibility.
3A hospital outpatient service was billed, and the remittance advice shows the N842 remark code.
→ This alert suggests that the charges for this outpatient service cannot be billed to the patient, which may be due to specific payer policies or programs.

What to Do

  1. Do not attempt to bill the patient for the charges indicated by this alert.
  2. Review the claim to ensure compliance with the payer's billing policies regarding patient responsibility.

What to Check

  • The patient's insurance policy details to confirm coverage limitations.
  • The claim submission documentation for any specific notes regarding patient billing.
  • Payer guidelines to understand why the patient cannot be billed for these charges.