Remark code N255 indicates that the claim has been flagged due to an issue with the billing provider's taxonomy information. Specifically, it means that the taxonomy code, which is used to classify the provider's specialty or type of service, is either missing, incomplete, or invalid on the submitted claim. This code alerts the healthcare provider that they need to provide the correct taxonomy information for the claim to be processed.
Common causes of code N255 are incorrect or missing provider taxonomy codes on the claim form, entry of a taxonomy code that does not match the provider type or specialty, or submission of a claim without the required taxonomy code as mandated by the payer or specific billing guidelines.
Ways to mitigate code N255 include ensuring that the billing provider's taxonomy code is accurately recorded on all claims submissions. This can be achieved by implementing a verification process within your RCM system that checks for the presence and validity of the taxonomy code before the claim is submitted. Regularly updating the provider's information in the practice management system and training staff on the importance of including complete provider details can also help prevent this code. Additionally, utilizing claim scrubbing software that flags missing or incorrect taxonomy codes can help catch errors before claims are sent to the payer.
The steps to address code N255 involve verifying and updating the billing provider's taxonomy information. First, review the claim to ensure that the correct taxonomy code was included and corresponds to the specialty of the provider who rendered the services. If the taxonomy code is missing or incorrect, obtain the accurate code by referencing the provider's documentation or the National Uniform Claim Committee (NUCC) Taxonomy code set. Update the claim with the correct taxonomy code and resubmit it to the payer. Additionally, ensure that the billing software is configured to include the provider's taxonomy code on all future claims to prevent recurrence of this issue.