DENIAL CODES

Denial code N740

Remark code N740 indicates insufficient funds in a member's Consumer Spending Account to cover their liability for a specific claim or service.

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What is Denial Code N740

Remark code N740 indicates that the member's Consumer Spending Account does not contain sufficient funds to cover the member's liability for this claim/service.

Common Causes of RARC N740

Common causes of code N740 are incorrect billing of services that should not be charged against the Consumer Spending Account (CSA), errors in the CSA balance due to previous transactions not being properly accounted for, or the CSA being depleted by other healthcare expenses prior to the claim submission. Additionally, this code may arise from miscommunication between the healthcare provider and the patient regarding the available balance or from the patient's misunderstanding of their CSA coverage limits.

Ways to Mitigate Denial Code N740

Ways to mitigate code N740 include implementing a pre-authorization process to verify fund availability in the member's Consumer Spending Account before services are rendered. Educating patients on the importance of maintaining sufficient funds in their accounts and offering payment plan options for anticipated services can also help. Additionally, regularly updating billing staff on the latest account management practices and utilizing software that can automatically check account balances prior to service delivery will further reduce the occurrence of this code.

How to Address Denial Code N740

The steps to address code N740 involve a multi-faceted approach to ensure the claim can be successfully reprocessed and paid. Initially, it's crucial to verify the accuracy of the claim submitted, focusing on the dates of service, the services rendered, and the amounts charged. If inaccuracies are found, correct the claim and resubmit it.

Next, contact the patient to inform them of the insufficient funds in their Consumer Spending Account. Provide them with a detailed breakdown of the charges and the amount that was not covered due to the lack of funds. It's important to educate the patient on how they can replenish their account or explore alternative payment methods.

Offer the patient options for payment, such as setting up a payment plan, paying through another insurance plan if available, or paying out of pocket. Ensure that the patient understands the urgency of resolving the payment issue to avoid delays in future services.

Simultaneously, document all communications with the patient regarding the insufficient funds and any agreed-upon payment arrangements. This documentation will be crucial if there are disputes or delays in payment.

Lastly, if the patient replenishes their Consumer Spending Account or provides an alternative payment method, resubmit the claim with the updated payment information. Keep a close eye on the claim to ensure it is processed and paid promptly. If the claim is denied again, review the reason for denial and take appropriate action, which may include appealing the decision if you believe the claim was unjustly denied.

CARCs Associated to RARC N740

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