N724Remark Code (RARC)Active
N724 Remark Code - NFSA Funds Required for Payment
The N724 remark code indicates that the patient is required to utilize No-Fault set-aside (NFSA) funds to cover the medical service or item billed. This remark supplements an adjustment already detailed by a Claim Adjustment Reason Code, providing additional context for the payment decision.
How It Relates to the Denial
The N724 remark typically accompanies adjustment reason codes that indicate a denial or reduction based on the need for NFSA funds. This combination signals that the payer expects the patient to use these specific funds before any other payment can be processed.
Common Scenarios
1A patient was treated for an auto accident injury, and the provider billed for physical therapy services. The remittance came back with a denial indicating that payment is not made because the patient has NFSA funds available.
→ The N724 remark clarifies that the patient must first use their NFSA funds to pay for the physical therapy services before the claim can be reconsidered for payment.
2During a follow-up visit for a work-related injury, the provider submitted a claim for diagnostic imaging. The remittance response indicated a reduction in payment with a note about NFSA funds.
→ The N724 remark suggests that the payment reduction is because the patient is required to use their NFSA funds for the imaging service, which must be exhausted first.
3A claim for outpatient surgery was submitted for a patient who is involved in a no-fault insurance case. The remittance returned with a denial that referenced NFSA funds.
→ The N724 remark informs the provider that the patient needs to apply their NFSA funds to settle the surgery costs before the payer will process any further payments.
What to Do
- Verify that the patient has NFSA funds available for the billed service.
- Inform the patient about their obligation to use NFSA funds for payment.
- Consider resubmitting the claim once NFSA funds have been applied, if applicable.
What to Check
- The patient's NFSA fund availability documentation.
- The claim adjustment reason code accompanying this remark.
- Any prior communications regarding the patient's no-fault insurance status.