N904Remark Code (RARC)Active
N904 Remark Code - Transportation Vendor Responsibility
The N904 remark code indicates that the transportation vendor is responsible for the claim in question. This implies that the provider may not be liable for the costs associated with the service rendered, as the vendor is expected to cover these expenses instead.
How It Relates to the Denial
The N904 code typically accompanies claim adjustment reason codes that denote responsibility for payment issues. When paired with an accompanying reason code indicating payment denial or adjustment, it clarifies that the transportation vendor should be the one addressing the claim.
Common Scenarios
1A provider submitted a claim for a patient transport service and received a remittance that included an adjustment for the claim amount due to a denial.
→ The N904 remark suggests that the transport vendor, not the provider, is responsible for payment. The provider should refer to the vendor for reimbursement.
2A claim for a non-emergency medical transport was billed by a healthcare provider, but the payment was denied with an associated adjustment reason code indicating payment responsibility issues.
→ With the N904 remark present, it signals that the transportation vendor has the obligation to pay for the claim, and the provider should not pursue payment directly.
3After billing for a transport service, the provider receives an explanation of benefits (EOB) stating that the claim will not be paid due to vendor responsibility.
→ The presence of the N904 remark confirms that the claim falls under the responsibility of the transportation vendor, indicating the provider should seek payment from that party.
What to Do
- Verify the transportation vendor's responsibility for the claim.
- Communicate with the transportation vendor regarding the outstanding claim and payment process.
- Do not attempt to collect payment from the patient for this specific claim.
What to Check
- The original claim submission details, including the service type and associated vendor information.
- The remittance advice to confirm the adjustment reason code paired with the N904 remark.
- Any contractual agreements with the transportation vendor regarding payment responsibilities.