N106Remark Code (RARC)Active
N106 Remark Code - Payment Responsibility for SNF Services
The N106 remark code indicates that payment for services rendered to inpatients in a Skilled Nursing Facility (SNF) is directed to the facility itself, not the patient. It emphasizes that providers should seek payment from the SNF and not the patient for these services, unless the services are excluded from this rule.
How It Relates to the Denial
Typically, N106 accompanies adjustment reason codes related to claims for services billed for SNF inpatients. This combination signals that the payment responsibility lies with the SNF, clarifying the payment process.
Common Scenarios
1A provider submits a claim for physical therapy services provided to a patient who is an inpatient at a SNF. The remittance advises a payment adjustment.
→ The presence of the N106 remark code indicates that the SNF is responsible for payment rather than the patient, reinforcing the need to bill the facility.
2A claim for nursing services for a SNF inpatient is denied due to payment being directed to the SNF. The remittance includes an adjustment reason code for the denial.
→ The N106 remark clarifies that the provider should not seek payment from the patient but should bill the SNF directly for the services rendered.
3A claim for a therapy service provided to a SNF inpatient is partially paid, and the remittance includes an adjustment indicating the amount paid to the SNF.
→ The N106 remark code reinforces that the payment made is intended for the SNF and that the provider should pursue any remaining balance from the facility.
What to Do
- Request payment from the Skilled Nursing Facility for the services rendered rather than the patient.
- Ensure the claim is correctly billed to the SNF to align with payment policies.
What to Check
- The claim details to confirm the patient was indeed an inpatient at a SNF.
- The payment policy of the SNF regarding services rendered to their inpatients.
- The accompanying adjustment reason code to fully understand the payment context.