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N107 Remark Code: SNF Inpatient Services on Inpatient Claim

N107 means services furnished to a skilled nursing facility (SNF) inpatient were billed separately as outpatient services. The payer requires them to be reported on the SNF's inpatient claim for the stay, so the separate outpatient claim or line was denied.

Quick facts

Code
N107 (RARC N107)
Status
Active In use since January 31, 2002.
Code set
Remittance Advice Remark Codes (RARC)
Group codes
  • CO (Contractual Obligation): A billing-format denial on an institutional claim. The amount is recovered by including the services on the correct inpatient bill, not by billing the patient.
Official description
Services furnished to Skilled Nursing Facility (SNF) inpatients must be billed on the inpatient claim. They cannot be billed separately as outpatient services.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What N107 means

A skilled nursing facility bills a covered inpatient stay on an institutional (UB-04 or 837I) claim with an inpatient type of bill. Most services its residents receive during the stay belong on that claim. N107 is returned when the same services show up on a separate outpatient-type claim for dates that overlap the inpatient stay.

Where N106 speaks to an outside provider, N107 is aimed at institutional billing. It usually pairs with CARC 190, CARC 16, or a type-of-bill conflict such as CARC 282.

Common causes

  • The facility’s system created an outpatient bill for therapy, labs, or supplies furnished to a resident who was in a covered stay.
  • The patient’s admission to the Part A stay was entered late, so services were billed before the stay was on file.
  • A hospital-based SNF billed services under the hospital’s outpatient claim instead of the SNF inpatient claim.
  • The admission or discharge dates on the inpatient claim were wrong, making services appear to fall outside the stay.

How to fix it

  1. Line up the dates of the outpatient services with the inpatient stay, using the admission and discharge dates reported on the SNF claim.
  2. Correct the stay dates if they were wrong, and adjust the inpatient claim.
  3. Move the services to the inpatient claim with the appropriate revenue codes, following your contractor’s process for adjusting a claim that has already been processed.
  4. Cancel or leave closed the denied outpatient claim so the same charges are not reported twice.

How to prevent it

Build an edit that holds outpatient claims for any resident with an open inpatient stay covering the same dates. Keep admission and discharge data current in the billing system. Prompt updates of the stay record at admission prevent most N107 denials.

Codes that may appear with N107

  • CO-190 (Payment is included in the allowance for a Skilled Nursing Facility (SNF) qualified stay.): Payment for the service is included in the allowance for the qualified SNF stay.
  • CO-16 (Claim/service lacks information or has submission/billing error(s).): The claim was submitted with a billing error; N107 explains that the claim type was wrong.
  • CO-282 (The procedure/revenue code is inconsistent with the type of bill.): The procedure or revenue code is inconsistent with the type of bill used.
  • N106 (Payment for services furnished to Skilled Nursing Facility (SNF) inpatients (except for excluded services) can only be made to the SNF.): Tells outside providers to seek payment from the SNF, the professional-side counterpart.
  • N121 (Medicare Part B does not pay for items or services provided by this type of practitioner for beneficiaries in a Medicare Part A covered Skilled…): Denies certain Part B practitioner services during a Part A SNF stay.
  • N34 (Incorrect claim form/format for this service.): Flags an incorrect claim form or format for the service.

N107 FAQ

Who receives N107?

Typically the SNF itself, or a facility billing an outpatient type of bill for a resident who was in a covered inpatient stay on the same dates.

Can the outpatient services be added to an inpatient claim that already paid?

Usually through an adjustment of the inpatient claim, following the payer's rules for replacement or late charges. Check how your contractor handles changes to a processed SNF claim.

Does N107 apply to excluded services?

Services excluded from SNF consolidated billing follow different billing rules, sometimes on a separate claim. N107 means the payer did not treat this service as excluded.