N227Remark Code (RARC)Active
Effective 08/01/2004

N227 Remark Code - Incomplete Medical Necessity Certificate

The N227 remark code indicates that the Certificate of Medical Necessity (CMN) submitted with the claim is incomplete or invalid. This remark provides additional context to a prior adjustment indicated by the accompanying reason code, suggesting that the payer requires proper documentation to support medical necessity for the services billed.

How It Relates to the Denial

The N227 remark typically accompanies a claim adjustment reason code that indicates a denial due to insufficient documentation. The combination of these codes signals that the claim cannot be processed further until a valid CMN is provided.

Common Scenarios

1A provider submitted a claim for durable medical equipment but received a denial stating that the documentation was insufficient.
→ The N227 remark is indicating that the Certificate of Medical Necessity is either incomplete or invalid, which is why the claim cannot be paid.
2A claim for a home health service was returned with an adjustment reason indicating missing documentation, along with the N227 remark.
→ The N227 remark clarifies that the specific issue is with the Certificate of Medical Necessity, which must be corrected for the claim to be considered valid.
3An outpatient procedure was billed, but the remittance included a denial for lack of medical necessity documentation with the N227 code.
→ The N227 remark highlights that the Certificate of Medical Necessity provided was not acceptable, necessitating a review and resubmission.

What to Do

  1. Review the Certificate of Medical Necessity submitted with the claim to ensure it is complete and accurate.
  2. Correct any identified errors in the CMN and resubmit it with the claim for reconsideration.
  3. If the CMN is missing, obtain a valid Certificate of Medical Necessity from the provider.

What to Check

  • The submitted Certificate of Medical Necessity for completeness and validity.
  • The claim submission details to confirm that the CMN was included as required.
  • Any additional documentation guidelines provided by the payer related to the specific service billed.