Denial code N847

Remark code N847 indicates the National Drug Code (NDC) billed is no longer current or valid.

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What is Denial Code N847

Remark code N847 is an indication that the National Drug Code (NDC) submitted with the billing is no longer current or valid, suggesting that the specific drug code used for billing purposes has been updated or replaced.

Common Causes of RARC N847

Common causes of code N847 are:

1. The use of an outdated National Drug Code (NDC) that has been replaced or discontinued.

2. Incorrect entry of the NDC number due to typographical errors.

3. Failure to update billing systems or databases with the most current NDC information.

4. Misinterpretation of the NDC format, leading to the submission of an obsolete code.

5. Reliance on outdated drug reference materials or lists when preparing claims.

6. Lack of communication between pharmacy and billing departments regarding changes in drug codes.

7. Inadequate training or oversight in the billing process, resulting in the use of superseded codes.

Ways to Mitigate Denial Code N847

Ways to mitigate code N847 include regularly updating your billing system's drug database to ensure it includes the most current National Drug Codes (NDCs). Implement a process to review and validate the NDCs against the FDA's updated list before submitting claims. Additionally, training staff on the importance of using the correct and current NDCs during the billing process can help prevent this issue. Utilizing billing software that alerts users to obsolete NDCs or automatically updates drug codes can also be an effective strategy in avoiding this error.

How to Address Denial Code N847

The steps to address code N847 involve a multi-faceted approach to ensure accurate billing and compliance with current pharmaceutical standards. First, it's essential to verify the NDC against the most recent updates in the drug database. If the NDC is confirmed to be obsolete, the next step is to identify the correct, updated NDC for the medication provided. This may involve consulting with the pharmacy or the prescribing healthcare provider to ensure the accuracy of the new code.

Once the updated NDC is obtained, the billing record should be corrected with this information. It's crucial to document the reason for the change in the patient's billing record to maintain transparency and compliance. After updating the billing record, resubmit the claim with the correct NDC to the payer.

Additionally, to prevent future occurrences of this issue, consider implementing a routine check of NDCs in your billing system against the latest drug databases. This can be done through automated software updates or periodic manual checks, depending on your resources. Training staff on the importance of using current NDCs and how to verify them can also reduce the risk of billing with obsolete codes.

Lastly, maintaining open communication with pharmacies and drug suppliers can help stay informed about NDC changes and ensure that the billing information remains current. This proactive approach can minimize claim rejections and delays in reimbursement due to obsolete NDCs.

CARCs Associated to RARC N847

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