N876Remark Code (RARC)ActiveInformational Alert
Effective 03/01/2022

N876 Remark Code: Coverage Alert Under No Surprises Act

The N876 code is an informational alert indicating that the item or service is covered under the plan. It also signifies a denial of payment according to the No Surprises Act, allowing the provider to negotiate a higher out-of-network rate if desired.

What This Alert Tells You

As an alert remark code, N876 is not tied to any specific adjustment or reason code. It serves as a reminder of coverage while also informing providers of their rights under the No Surprises Act concerning out-of-network negotiations.

Common Scenarios

1A provider submits a claim for an out-of-network service, and the patient receives a notice indicating that the service is covered under their plan.
→ The N876 alert suggests that even though there was a denial of payment, the service is indeed covered, allowing the provider the option to negotiate for a higher payment.
2A facility bills for a procedure performed on a patient who is out-of-network, and the remittance response includes the N876 alert.
→ This alert informs the facility that the service is covered by the patient's insurance plan, but payment has been denied, prompting the facility to consider negotiating a higher rate.
3A claim for a covered service is denied, and the remittance advice includes the N876 remark for the provider's review.
→ The N876 alert indicates that while the claim was denied, the service remains covered under the patient's plan, and the provider may pursue negotiation options.

What to Do

  1. Do not resubmit the claim as the alert is informational only.
  2. Consider initiating open negotiations for a higher out-of-network payment if applicable.

What to Check

  • Review the patient's plan benefits to confirm coverage for the service.
  • Check the patient's cost-sharing amounts to understand the payment dynamics.
  • Examine the provided remittance advice for additional details on the payment denial.