N877Remark Code (RARC)ActiveInformational Alert
N877 Remark Code: No Surprises Act Payment Alert
The N877 remark code indicates that the initial payment received is in compliance with the No Surprises Act. This means that the provider or facility has the option to start open negotiations if they wish to pursue a higher out-of-network reimbursement rate.
What This Alert Tells You
As an ALERT remark, N877 is informational and is not associated with any adjustments or denials. It serves to inform providers about their rights under the No Surprises Act regarding out-of-network payments.
Common Scenarios
1A provider receives an initial payment for an out-of-network service rendered to a patient covered by a plan subject to the No Surprises Act.
→ The N877 remark signals that this payment was made according to the No Surprises Act, and the provider can negotiate for a higher rate if desired.
2A facility bills for emergency services provided to a patient and receives an 835 with the N877 remark code.
→ This indicates that the payment aligns with the No Surprises Act, allowing the facility to negotiate for better compensation if they choose.
3A provider sees N877 on their remittance advice after submitting a claim for a non-contracted service.
→ This remark informs the provider that they can enter negotiations for a higher payment amount since the payment is governed by the No Surprises Act.
What to Do
- Do not take any action related to this remark, as it is purely informational.
- Consider initiating open negotiations for a higher out-of-network rate if it is beneficial.
What to Check
- Review the claim details to understand the payment amount compared to usual rates.
- Check the No Surprises Act guidelines to understand your negotiation rights and process.
- Ensure documentation is in place if you decide to initiate negotiations.