N656Remark Code (RARC)Active
N656 Remark Code - Interest Payment Explained
The N656 remark code indicates that an interest payment is being issued due to benefits being paid outside the statutory requirement. This suggests that the payer is compensating for a delay in payment that exceeded the legally mandated timeframe.
How It Relates to the Denial
The N656 remark typically accompanies a claim adjustment reason code that indicates a payment has been adjusted due to late processing. Together, these codes signal to the biller that an interest payment is being made as a result of the payer's delay in meeting statutory payment timelines.
Common Scenarios
1A provider submitted a claim for a surgical procedure, and after several weeks, they received a remittance that included a reduction for late payment.
→ The presence of the N656 remark alongside the adjustment reason code indicates that the payer is issuing an interest payment for the delay in processing the claim.
2A claim for a diagnostic test was submitted, and the remittance advised of a payment adjustment due to a late response from the payer.
→ The N656 remark clarifies that the adjustment includes an interest payment because the benefits were paid later than the statutory requirement.
3A provider billed for a series of therapy sessions, and the remittance included a note about an interest payment due to a late reimbursement.
→ Here, the N656 remark signifies that the payer acknowledges the delay and is compensating the provider with an interest payment.
What to Do
- Verify the claim adjustment reason code associated with the N656 remark to understand the context of the interest payment.
- Ensure that the payment received reflects the interest amount as indicated by the N656 remark and adjust records accordingly.
What to Check
- Review the remittance advice to confirm the claim adjustment reason code paired with N656.
- Check the payment timeline to determine if the benefits were indeed paid outside the statutory requirement.
- Look at prior correspondence or claims history for delays related to the specific claim in question.