N432Remark Code (RARC)ActiveInformational Alert
N432 Remark Code: Recovery Audit Adjustment Alert
The N432 code indicates that an adjustment has been made based on a Recovery Audit. This alert serves to inform the provider that the payer has conducted a review of claims, which may result in adjustments to previously paid amounts.
What This Alert Tells You
As an informational alert, N432 does not accompany any specific adjustment or reason code. It simply indicates that the payer's recovery audit process has influenced the claims payment.
Common Scenarios
1A provider receives an 835 remittance showing a reduction in payment for a previously billed service, with the N432 alert included in the remittance advice.
→ In this case, the N432 alert is indicating that the reduction is due to findings from a Recovery Audit, not necessarily requiring any action from the provider.
2After an audit, a practice sees the N432 alert on their remittance advice alongside other payment adjustments for multiple claims.
→ The N432 alert signals that the payer has completed a recovery audit and adjustments are based on that review, which might affect multiple claims.
3A healthcare facility checks their remittance advice and finds the N432 alert listed next to a payment that was lower than expected for a covered procedure.
→ Here, the N432 alert conveys that the payment discrepancy is related to a Recovery Audit decision, highlighting the payer's audit activities.
What to Do
- Do not resubmit claims based solely on the N432 alert, as this is informational.
- Review the remittance advice for any specific adjustments that may be detailed alongside the N432 alert.
What to Check
- Review the Recovery Audit findings if available, as they may impact future claims.
- Check the payer's policy on Recovery Audits for further understanding of potential adjustments.
- Look at the claim history for any previous adjustments that might relate to the N432 alert.