N827Remark Code (RARC)Active
Effective 11/01/2019

N827 Remark Code - Missing FIPS Code Explained

The N827 remark code indicates that the claim has a missing, incomplete, or invalid Federal Information Processing Standard (FIPS) code. This remark supplements a claim adjustment reason code, providing additional context about the specific issue with the FIPS code related to the claim being processed.

How It Relates to the Denial

The N827 remark typically accompanies adjustment reason codes that indicate a denial or reduction in payment due to issues with the FIPS code. It signals that the claim cannot be processed accurately without the correct FIPS code information provided by the provider.

Common Scenarios

1A provider submits a claim for a service rendered to a patient but receives a denial indicating an adjustment for the FIPS code.
→ The N827 remark suggests that the claim was denied because the FIPS code was either missing or incorrect, preventing proper processing.
2A facility bills for a procedure but gets back a remittance that shows an adjustment due to an invalid FIPS code.
→ In this case, the N827 remark informs the biller that the FIPS code associated with the claim does not meet the necessary standards, leading to the payment adjustment.
3A claim for a patient encounter is submitted, and the remittance received indicates a reduction in payment with a note about the FIPS code.
→ Here, the N827 remark clarifies that the adjustment is related to issues with the FIPS code, which must be corrected for proper reimbursement.

What to Do

  1. Verify the FIPS code entered on the claim submission for accuracy and completeness.
  2. If the FIPS code is missing, obtain the correct code and prepare to resubmit the claim.
  3. Ensure that the FIPS code aligns with the geographic location of the service provided.

What to Check

  • Review the claim form to confirm the FIPS code is included and correctly formatted.
  • Check the provider's records for the accurate FIPS code related to the service location.
  • Consult the payer's guidelines regarding required FIPS code submissions.