DENIAL CODES

Denial code N854

Remark code N854 indicates that if your primary other health insurance denies services, all appeal levels must be exhausted before claim reimbursement consideration.

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 N854

Remark code N854 is an alert indicating that if you possess primary other health insurance (OHI) coverage that has denied services, it is mandatory to exhaust all appeal levels with your primary OHI before your claim can be considered for reimbursement.

Common Causes of RARC N854

Common causes of code N854 are:

1. The primary Other Health Insurance (OHI) has not been billed before submitting the claim to the secondary insurer.

2. The claim was submitted to the secondary insurer without providing evidence of denial or payment from the primary OHI.

3. All appeal levels with the primary OHI have not been exhausted, or there is insufficient documentation to prove that appeals have been pursued.

4. Incorrect or incomplete information was provided regarding the primary OHI coverage, leading to a misunderstanding of the coverage status.

5. The claim was submitted to the secondary insurer in error, under the assumption that the primary OHI would deny the service, without actual denial evidence.

6. There is a lack of coordination between the primary and secondary insurance, causing confusion about the claim's processing status.

Ways to Mitigate Denial Code N854

Ways to mitigate code N854 include implementing a comprehensive insurance verification process at the point of service to ensure that all patient coverage information is accurate and up to date. This process should include verifying whether the patient has primary other health insurance (OHI) and the status of any claims submitted to that insurer. Additionally, healthcare providers should educate patients about the importance of promptly appealing any denials from their primary OHI and offer guidance or resources to help them navigate the appeals process. Establishing a system to track the progress of these appeals and follow up with patients can also help ensure that all necessary steps are taken before submitting a claim for reimbursement to the secondary insurer.

How to Address Denial Code N854

The steps to address code N854 involve a multi-faceted approach to ensure that all necessary actions have been taken with the primary other health insurance (OHI) before proceeding. Firstly, review the denial from the primary OHI meticulously to understand the reasons behind it. This understanding is crucial for formulating an effective appeal.

Next, initiate the appeal process with the primary OHI. This involves gathering all relevant medical records, doctor's notes, and any other evidence that supports the necessity and appropriateness of the service or procedure that was denied. It's important to adhere strictly to the primary OHI's guidelines for submitting an appeal, including deadlines and format requirements.

While waiting for the outcome of the appeal, document all communications and steps taken. This documentation should include dates of service, denial notices, copies of the appeal submission, and any correspondence related to the appeal.

If the appeal with the primary OHI is unsuccessful and all levels of appeal have been exhausted, compile a comprehensive package of all these documents. This package should then be submitted to the secondary insurer along with a detailed explanation that all appeal levels with the primary OHI have been exhausted. Ensure that this submission clearly indicates that you are now seeking reimbursement from the secondary insurance as per code N854's stipulations.

Throughout this process, maintain open lines of communication with the patient, informing them of the status of their claim and any potential financial responsibilities they may have pending the outcome of these appeals. This proactive communication helps manage patient expectations and reinforces the provider's commitment to assisting them through the insurance process.

CARCs Associated to RARC N854

Improve your financial performance while providing a more transparent patient experience

Full Page Background