N847Remark Code (RARC)Active
N847 Remark Code - Obsolete National Drug Code
The N847 remark code indicates that the National Drug Code (NDC) billed on the claim is considered obsolete. This means that the payer has recognized that the specific NDC used is no longer valid for billing purposes, which may require the provider to update their claims with a current NDC.
How It Relates to the Denial
The N847 code typically accompanies adjustment reason codes related to denied or reduced payments for drug claims. This combination signals to the biller that there is a specific issue with the NDC billed, necessitating correction before resubmission.
Common Scenarios
1A pharmacy submitted a claim for a medication using an NDC that has been in use for several years. The claim came back with an adjustment reason indicating a payment denial.
→ The N847 remark code clarifies that the reason for the denial is due to the NDC being obsolete, which means the pharmacy needs to find and bill using a valid, up-to-date NDC.
2A provider billed for a vaccine that included an outdated NDC. The remittance advice returned showed a reduction in payment along with a reason code for the adjustment.
→ The presence of the N847 remark code indicates that the outdated NDC is the reason for the payment adjustment, highlighting the need for the provider to update their NDC for future claims.
3A hospital submitted a claim for a chemotherapy drug, but the remittance advice indicated a denial with a reason code and included the N847 remark code.
→ In this case, the N847 remark code informs the hospital that the billed NDC is obsolete, prompting them to correct the NDC on the claim to ensure proper reimbursement.
What to Do
- Verify the NDC billed on the claim and ensure it is current and valid.
- Replace the obsolete NDC with a valid one from the National Drug Code Directory.
- Resubmit the claim with the updated NDC to avoid further denials.
What to Check
- The NDC billed on the original claim to confirm its status.
- The National Drug Code Directory for an updated NDC.
- The claim adjustment reason code accompanying the N847 remark for additional context.