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N171 Remark Code: Repair or Replacement Not Covered

N171 means payment for repair or replacement is not covered, or the payments have already exceeded the purchase price of the item. The payer will not pay more for fixing or replacing the equipment than it would cost to buy it, or does not cover repairs for this item at all.

Code: N171 (RARC N171)
Status: Active In use since February 28, 2003.
Code set: Remittance Advice Remark Codes (RARC)
Group codes: CO (Contractual Obligation): The supplier generally absorbs the denied amount unless the patient was notified in advance and agreed to pay.
PR (Patient Responsibility): The patient may be responsible for non-covered repairs if they signed a valid advance notice or own the item under plan terms that exclude repairs.
Official description: Payment for repair or replacement is not covered or has exceeded the purchase price.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified: September 24, 2026 against the official X12 list.

What N171 means

Payers limit how much they will spend on keeping a piece of equipment working. N171 covers two situations: the payer does not cover repair or replacement for this item or circumstance, or the total already paid plus this claim would exceed what the item would cost to buy.

It usually pairs with CARC 96 or a rent-or-purchase reason code.

Common causes

The equipment is still in a rental period, and the payer considers repairs part of the rental.
Repairs over time have added up to more than the item’s purchase price.
The item was replaced before the end of its expected useful life without a covered reason.
The repair claim lacked detail, so the payer could not confirm it was cheaper than replacement.

What to do

Check ownership: is the item rented or owned by the patient?
Review the repair and payment history for the item.
If the claim lacked detail, resubmit with itemized parts, labor, and model number.
If replacement was needed for a covered reason, appeal with documentation of the loss, damage, or change in condition.
Otherwise, resolve the balance based on the group code and any advance notice.

How to prevent it

Before repairing, compare the estimated cost with the item’s purchase price and the payments already made, and confirm the payer’s rules for the item’s status. For replacements, collect the documents payers usually require before ordering the new item.

Codes that may appear with N171

CO-96 (Non-covered charge(s).): A non-covered charge for the repair or replacement.
CO-108 (Rent/purchase guidelines were not met.): Rent or purchase guidelines were not met.
PR-119 (Benefit maximum for this time period or occurrence has been reached.): The benefit maximum for the item or period has been reached.

N160 (The patient must choose an option before a payment can be made for this procedure/ equipment/ supply/ service.): The patient must choose an option, such as rent or purchase, before payment.
N150 (Missing/incomplete/invalid model number.): The model number for the item is missing or invalid, often required on repair claims.
M6 (Alert: You must furnish and service this item for any period of medical need for the remainder of the reasonable useful lifetime of the equipment.): An alert about the supplier's obligation to furnish and service an item for its useful lifetime.

N171 FAQ

When are repairs usually covered?

Payers commonly cover repairs to patient-owned equipment when needed to make it serviceable, up to limits. Repairs to rented equipment are often the supplier's responsibility under the rental. Rules vary by payer.

What if replacement is needed because the item was lost or damaged?

Some payers cover replacement for loss, theft, or irreparable damage with documentation such as a police or incident report. Others do not. Check the policy.

How do I show the repair cost is reasonable?

Itemize parts and labor, give the model number, and compare the cost with the item's purchase price. Payers look at whether repair is cheaper than replacement.

Important: read before using this information

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