N377Remark Code (RARC)Active
N377 Remark Code: Payment Based on Replacement Claim
The N377 remark code indicates that the payment being made is based on a processed replacement claim. It supplements an adjustment already described by a Claim Adjustment Reason Code, providing further clarification on the payment determination.
How It Relates to the Denial
Typically, N377 appears alongside adjustment reason codes related to claim replacements or resubmissions. This combination signals that the payer is processing a claim that has replaced a previously submitted claim, affecting the payment amount.
Common Scenarios
1A provider submitted a claim for a surgical procedure but later found an error and submitted a corrected claim. The remittance shows a payment adjustment with N377.
→ In this scenario, the N377 remark indicates that the payment reflects the processed replacement claim, clarifying that the original claim was replaced.
2A billing office resubmitted a claim for a diagnostic test after receiving a denial due to missing information. The payment received includes an adjustment and the N377 remark.
→ Here, the N377 remark informs the billing office that the payment adjustment made is based on the newly processed replacement claim, rather than the initial claim.
3A facility submitted a claim for outpatient services and later submitted a replacement claim due to a coding error. The remittance indicates a payment with N377.
→ The presence of N377 in this case signifies that the payment is contingent upon the processed replacement of the original claim that had the coding error.
What to Do
- Review the adjustment reason code accompanying N377 to understand the specific adjustment made.
- Ensure that the replacement claim was submitted correctly and that all necessary documentation was included.
- Verify that the payment amount aligns with the expectations set by the replacement claim.
What to Check
- The original claim submission to confirm it has been replaced correctly.
- The replacement claim to ensure it includes all necessary corrections or documentation.
- The remittance advice details to understand how the payment was calculated based on the replacement claim.