DENIAL CODES

Denial code N723

Remark code N723 is an alert that the patient must use Liability Set-Aside funds for the medical service or item payment.

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What is Denial Code N723

Remark code N723 means that the patient is required to utilize funds from a Liability Set-Aside (LSA) arrangement to cover the costs associated with the medical service or item in question.

Common Causes of RARC N723

Common causes of code N723 are incorrect billing where the provider has not properly identified or billed the Liability Set-Aside (LSA) arrangement, misunderstanding or lack of awareness of the patient's LSA funds, or errors in the patient's insurance information that fail to indicate the presence of LSA funds designated for specific medical services or items.

Ways to Mitigate Denial Code N723

Ways to mitigate code N723 include implementing a comprehensive patient education program about the importance and usage of Liability Set-Aside (LSA) funds. This should involve clear communication during patient intake and registration processes about the necessity of utilizing LSA funds for certain services or items. Additionally, establishing a verification system within the billing department to check LSA fund availability before processing claims can prevent this issue. Training staff to recognize services typically covered by LSA funds and to proactively address these with patients can also reduce occurrences of this code. Lastly, creating a streamlined process for patients to report and utilize their LSA funds, possibly through an online portal or direct coordination with the LSA administrator, can further mitigate this issue.

How to Address Denial Code N723

The steps to address code N723 involve a multi-faceted approach focusing on patient communication and billing adjustments. Initially, it's crucial to engage in a detailed discussion with the patient to ensure they understand the requirement to use Liability Set-Aside (LSA) funds for their medical services or items. This conversation should also cover how to access and utilize these funds properly.

Following patient communication, the billing department should adjust the billing process to directly involve the LSA administrator, if applicable. This involves sending the bill or claim directly to the LSA administrator instead of traditional insurance or Medicare, ensuring that the claim specifies that payment should be drawn from the LSA funds.

Additionally, it's important to document all communications and attempts to resolve the issue in the patient's account. This documentation should include notes on patient discussions, any correspondence with the LSA administrator, and adjustments made to the billing process to accommodate the use of LSA funds.

If the patient encounters difficulties in using their LSA funds, offer assistance in navigating these challenges, potentially including coordination with the LSA administrator to clarify allowable expenses or resolve funding issues.

Lastly, monitor the claim closely to ensure that payment is received from the LSA funds and follow up as necessary to address any delays or discrepancies in payment. This proactive approach will help ensure that the services are paid for appropriately while maintaining compliance with the requirement to use LSA funds.

CARCs Associated to RARC N723

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