Denial code N802

Remark code N802 is an alert that the claim isn't payable in the current service area and must be filed to the correct Payer/Plan.

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 N802

Remark code N802 is an indication that the claim or service submitted is not eligible for payment under the current service area of the insurance plan. It suggests that the claim should be redirected and filed with the insurance payer or plan that covers the geographical area where the rendering physician or service provider is located.

Common Causes of RARC N802

Common causes of code N802 are:

1. The healthcare provider submitted a claim to an insurance company that does not cover services in the geographic location where the services were rendered.

2. The claim was filed to the incorrect insurance plan or payer, which does not have a contract or agreement to provide coverage in the area where the healthcare services were provided.

3. There was an error in the provider's billing system or process, leading to the claim being sent to the wrong insurance entity.

4. The patient received services outside of the network or service area covered by their health plan, and the claim was not redirected appropriately to the correct payer or plan that covers the service area.

5. Misunderstanding or lack of knowledge about the specific coverage areas of different insurance plans, leading to incorrect filing of claims.

Ways to Mitigate Denial Code N802

Ways to mitigate code N802 include ensuring that the billing team verifies the service area coverage of the payer or plan before submitting claims. This can be achieved by maintaining an updated database of payer service areas and regularly training staff on how to use this information effectively. Additionally, implementing a pre-claim submission process that includes a verification step for the rendering physician's location relative to the payer's service area can help prevent this issue. Utilizing electronic eligibility verification tools that can provide real-time information about the payer's service area and the rendering physician's eligibility can also be beneficial. Lastly, establishing clear communication channels with payers to quickly resolve any uncertainties regarding service areas before claim submission can further reduce the occurrence of code N802.

How to Address Denial Code N802

The steps to address code N802 involve a multi-faceted approach focusing on accurate claim submission to the appropriate payer. Initially, verify the service area of the rendering physician and ensure that the claim is being submitted to the correct payer or plan that covers services in that specific location. This may require consulting the provider directory of the patient's insurance plan or contacting the insurance company directly for clarification on the correct service area and corresponding payer.

Next, if the claim was submitted to the wrong payer due to incorrect information or an oversight, prepare to re-submit the claim to the correct payer. This involves updating the claim with the accurate payer information, double-checking the rendering physician's location and service area details, and ensuring all other claim details are accurate and complete.

In cases where there is confusion or disagreement about the designated service area, it may be necessary to engage in a dialogue with the payer to clarify the service area boundaries and the provider's inclusion in those areas. Documentation supporting the provider's location and service area should be gathered and ready to present if required.

Additionally, consider implementing a system within your billing software or practice management system that flags claims based on the rendering physician's location and the patient's insurance plan details. This can help prevent future occurrences of code N802 by ensuring claims are directed to the appropriate payer from the outset.

Finally, use this experience as a learning opportunity to review and possibly update your practice's internal processes for verifying insurance coverage and understanding payer service areas. Training staff on these updated processes can help reduce the likelihood of similar issues moving forward.

CARCs Associated to RARC N802

Get paid in full by bringing clarity to your revenue cycle

Full Page Background