DENIAL CODES

Denial code N2

Remark code N2 indicates an allowance adjustment based on the plan's most appropriate treatment provision.

Accelerate your revenue cycle

Boost patient experience and your bottom line by automating patient cost estimates, payer underpayment detection, and contract optimization in one place.

Get a Demo

What is Denial Code N2

Remark code N2 indicates that the payment adjustment has been made based on the provisions within the patient's health plan that determine the most appropriate course of treatment. This means the insurer has reviewed the treatment provided and deemed it either consistent or inconsistent with the plan's guidelines for what is considered the most suitable care for the condition being treated. As a result, the reimbursement reflects the insurer's decision in line with these specific plan rules.

Common Causes of RARC N2

Common causes of code N2 are:

1. The service provided was not deemed as the most appropriate or necessary course of treatment according to the guidelines of the patient's health plan.

2. There may have been a less expensive alternative treatment that is considered equally effective by the payer.

3. The treatment may have exceeded the frequency or duration typically covered by the plan for the diagnosed condition.

4. The healthcare provider may have failed to obtain required pre-authorization or pre-certification for the specific course of treatment.

5. The claim may have been submitted with incorrect or insufficient documentation to justify the necessity of the treatment provided.

6. The payer's medical policy may have specific limitations or exclusions that apply to the treatment rendered, resulting in an adjusted allowance.

7. The treatment may fall under a policy provision that requires a second opinion or consultation before proceeding with the recommended course of action.

Ways to Mitigate Denial Code N2

Ways to mitigate code N2 include ensuring that the treatment provided aligns with the payer's coverage criteria for the most appropriate course of treatment. This can be achieved by:

1. Staying updated with the payer's plan provisions and any changes to what is considered the most appropriate course of treatment.

2. Conducting thorough verification of benefits before providing services to understand what the payer deems as an appropriate course of treatment for a given condition.

3. Implementing a robust pre-authorization process to confirm that the planned treatment will be covered under the patient's current plan.

4. Training staff to recognize treatments that may not be considered the most appropriate by certain plans and to seek alternative covered options.

5. Documenting medical necessity comprehensively in the patient's records to support the chosen course of treatment.

6. Regularly reviewing treatment plans and comparing them against payer policies to ensure compliance with the most recent guidelines.

7. Communicating effectively with payers when there is any ambiguity about the appropriateness of a treatment, to clarify and confirm coverage before proceeding.

8. Utilizing clinical decision support tools that align with payer policies to assist in selecting the most appropriate course of treatment.

9. Engaging in peer-to-peer reviews with the payer's medical reviewers when necessary to justify the appropriateness of the treatment plan.

10. Keeping detailed records of all communications with the payer regarding treatment plans and coverage determinations to support appeals if the treatment is initially denied.

How to Address Denial Code N2

The steps to address code N2 involve reviewing the treatment provided against the payer's coverage policies to ensure that the services rendered align with what is considered the most appropriate course of treatment. If the services are consistent with the coverage policies, gather and submit any necessary documentation or clinical evidence that supports the medical necessity and appropriateness of the treatment. If discrepancies are found, consider revising the claim with the correct services that meet the plan's provisions. Additionally, communicate with the payer to clarify any misunderstandings or to obtain further guidance on their definition of the most appropriate course of treatment. If the claim is denied, you may need to file an appeal, providing detailed justification and supporting evidence for the treatment provided.

CARCs Associated to RARC N2

Improve your financial performance while providing a more transparent patient experience

Full Page Background