N396Remark Code (RARC)Active
Effective 08/01/2007

N396 Remark Code - Incomplete/Invalid Laboratory Report

The N396 remark code indicates that the laboratory report submitted with the claim was either incomplete or invalid. This remark supplements an adjustment already made by a Claim Adjustment Reason Code, providing additional clarity on the reason for the denial or reduction in payment.

How It Relates to the Denial

Typically, the N396 remark code accompanies adjustment reason codes that relate to laboratory services. This combination signals to the biller that there is a specific issue with the laboratory report that needs to be addressed before resubmission.

Common Scenarios

1A claim for a lab test was submitted, but the remittance returns with an adjustment indicating a denial due to laboratory report issues.
→ The N396 remark code suggests that the payer found the laboratory report lacking necessary information or validity, which is impacting the claim's payment.
2A facility billed for a pathology service, but the payment was reduced, and the remittance included the N396 code.
→ In this case, the N396 remark code points to a deficiency in the laboratory report that must be corrected for the claim to be reconsidered.
3A provider submitted claims for multiple lab tests, and one of the claims was denied with the N396 remark code included in the remittance advice.
→ The presence of N396 indicates that there was an issue with the specific laboratory report associated with that claim, necessitating a review and possible amendment.

What to Do

  1. Review the laboratory report for completeness and validity.
  2. Correct any deficiencies in the report and gather necessary supporting documentation.
  3. Resubmit the claim with the corrected laboratory report attached.

What to Check

  • The original laboratory report submitted with the claim.
  • The claim form details to ensure all required information was included.
  • Any additional documentation requested by the payer regarding the laboratory service.