N370Remark Code (RARC)Active
N370 Remark Code - Billing Exceeds Rental Coverage
The N370 remark code indicates that the billing submitted exceeds the number of rental months that the payer has approved or covered. This suggests that the claim includes charges for rental equipment beyond what is allowed by the payer's policy.
How It Relates to the Denial
The N370 code typically accompanies a Claim Adjustment Reason Code that indicates a denial or reduction based on rental coverage limits. The combination signals that the claim was adjusted due to excess rental charges.
Common Scenarios
1A provider billed for a wheelchair rental for six months, but the payer only approved three months of coverage. The remittance returned with an adjustment and the N370 remark code.
→ In this case, the N370 remark code clarifies that the billed amount exceeds the rental period authorized by the payer, indicating that the provider should review the rental limits.
2A durable medical equipment supplier submitted a claim for a nebulizer rental for four months, while the payer's policy allows only two months. The claim was partially denied with N370 noted.
→ Here, the N370 remark code signifies that the supplier's billing surpassed the approved rental duration, prompting a need to adjust future claims to align with the payer's coverage.
3A patient received a rental item for a total of five months, but the payer's authorized rental period was three months. The remittance advice included the N370 code along with a corresponding adjustment reason code.
→ The N370 remark code indicates that the total rental charges billed exceed the authorized period, signaling the need for the provider to adhere to the rental limits set by the payer.
What to Do
- Review the rental duration covered by the payer for the specific item billed.
- Adjust the claim to reflect only the approved rental months in future submissions.
- Consider contacting the payer for clarification on rental policies if consistently encountering this issue.
What to Check
- The payer's policy regarding rental equipment coverage limits.
- The specific rental duration authorized for the item in question.
- The original claim submitted to compare billed months against approved months.