DENIAL CODES

Denial code N862

Remark code N862 indicates compliance with the No Surprises Act, showing member cost share is based on the lesser of QPA or billed charge.

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 N862

Remark code N862 indicates that the member's cost share responsibility has been determined in accordance with the No Surprises Act. It specifies that the calculation for the member's cost share is based on the lesser amount between the qualifying payment amount (QPA) or the billed charge for the service provided.

Common Causes of RARC N862

Common causes of code N862 are incorrect application of the Qualified Payment Amount (QPA) in the calculation of the member's cost share, misinterpretation of the No Surprises Act requirements, billing errors that result in discrepancies between the charged amount and the QPA, and inaccuracies in the determination of the applicable cost-sharing amount under the No Surprises Act provisions.

Ways to Mitigate Denial Code N862

Ways to mitigate code N862 include implementing a robust verification system to accurately determine member cost-sharing responsibilities in advance. This involves staying updated with the latest guidelines under the No Surprises Act and ensuring that your billing system is equipped to automatically calculate the member's cost share based on the lesser of the Qualified Payment Amount (QPA) or the billed charge. Training your billing staff to understand these calculations and to manually review them when necessary can also help prevent discrepancies. Additionally, establishing clear communication channels with insurance providers can aid in resolving any uncertainties regarding the QPA or billed charges before claims submission. Regular audits of billed charges against the QPA and the implementation of software solutions that can flag potential mismatches can further reduce the likelihood of this code being triggered.

How to Address Denial Code N862

The steps to address code N862 involve a multi-faceted approach to ensure that the billing and patient financial responsibility are accurately reflected and communicated. Firstly, review the patient's bill to confirm that the member cost share accurately reflects the lesser of the qualifying payment amount (QPA) or the billed charge, as stipulated by the No Surprises Act. If discrepancies are found, adjustments should be made to align with the correct amount.

Next, update the patient's account and billing records to reflect the accurate cost share amount. This may involve recalculating the patient's balance and issuing a revised statement if the initial bill did not comply with the No Surprises Act requirements.

Communicate with the patient to explain the reason for the code N862 appearance on their Explanation of Benefits (EOB) and how it affects their cost-sharing responsibilities. Provide clear, understandable information on how their cost share was calculated and reassure them that their bill complies with the No Surprises Act, emphasizing the protection it offers them from unexpected medical bills.

Additionally, it's crucial to train billing and customer service staff on how to handle inquiries related to code N862 and the No Surprises Act. They should be equipped with knowledge and scripts to explain the billing adjustments and the rationale behind them effectively.

Finally, implement a system for regularly reviewing billing practices and compliance with the No Surprises Act to prevent future occurrences of discrepancies related to code N862. This could involve periodic audits of billed charges versus QPA and ensuring that software or billing systems are updated to automatically apply the lesser amount where applicable.

CARCs Associated to RARC N862

Improve your financial performance while providing a more transparent patient experience

Full Page Background