N438Remark Code (RARC)Active
Effective 07/01/2008 · Updated 03/14/2014

N438 Remark Code - Jurisdiction Only Accepts Paper Claims

The N438 remark code indicates that the jurisdiction associated with the claim only accepts paper claims, not electronic submissions. This means that any electronic claim submitted will not be processed, and the payer expects to receive a paper version instead.

How It Relates to the Denial

The N438 remark typically accompanies a claim adjustment reason code related to claims submitted electronically in a jurisdiction that mandates paper submissions. This combination signals to the biller that the claim cannot be processed as billed due to the submission method.

Common Scenarios

1A provider submitted an electronic claim for a service rendered in a jurisdiction known for accepting only paper claims.
→ The N438 remark code indicates that the payer will not process the electronic claim, and the provider must submit a paper claim to comply with jurisdictional requirements.
2A billing office received a remittance for a denied claim with an adjustment reason code indicating it was not processed due to submission method, alongside the N438 remark.
→ The presence of the N438 remark clarifies that the claim was denied because it was submitted electronically in a jurisdiction that only accepts paper claims.
3A healthcare facility's electronic claim was returned with the N438 code after a recent switch to electronic billing.
→ This means the facility needs to revert to submitting paper claims for this jurisdiction, as the payer will not accept electronic submissions.

What to Do

  1. Resubmit the claim as a paper claim to the appropriate address for the jurisdiction.
  2. Ensure that all required documentation is included with the paper claim submission.

What to Check

  • Verify the jurisdiction guidelines to confirm that only paper claims are accepted.
  • Review the claim submission records to ensure that the claim was indeed submitted electronically.
  • Check any payer-specific policies regarding claim submission methods for this jurisdiction.