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N229 Remark Code: Incomplete or Invalid Contract Indicator

N229 means the contract indicator on the claim, the value some payers use to identify which contract or pricing arrangement applies, was present but incomplete or invalid, so the payer could not price the claim correctly.

Quick facts

Code
N229 (RARC N229)
Status
Active In use since August 1, 2004.
Code set
Remittance Advice Remark Codes (RARC)
Group codes
  • CO (Contractual Obligation): The claim was denied or held because of a data problem. Correct it; the patient is not responsible.
Official description
Incomplete/invalid contract indicator.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What N229 means

Some payers price claims under several possible agreements with the same provider, and they rely on a contract indicator to choose among them. With N229, the indicator was on the claim but the payer could not use it: perhaps the value is not one it recognises, it is incomplete, or it points to a contract that does not cover this service or date. The remark usually explains CARC 16.

Because each payer defines the element and its values, the fix depends almost entirely on that payer’s companion guide and your agreement.

Common causes

  • A default value was set in the billing system and applied to every claim, including ones outside the contract.
  • The contract changed or expired and the old indicator is still being sent.
  • A required companion amount or code was not sent with the indicator.
  • The clearinghouse mapped the value into the wrong position.

How to fix it

  1. Look up the valid indicator values in the payer’s companion guide.
  2. Confirm with your contracting team which agreement applies to the service and date of service.
  3. Correct the value, or remove it if the payer should use the standard contract, and submit a corrected claim with the original claim number.
  4. Test a claim through your clearinghouse to confirm the field reaches the payer as intended.

How to prevent it

Tie contract indicator values to specific payers, services, and date ranges in your billing rules instead of using a global default. When a contract is amended, include an update to billing configuration in the implementation checklist.

Codes that may appear with N229

  • CO-16 (Claim/service lacks information or has submission/billing error(s).): The claim contains invalid information; N229 names the contract indicator.
  • CO-256 (Service not payable per managed care contract.): Service not payable per managed care contract, possibly because the wrong contract was indicated.
  • N190 (Missing contract indicator.): The contract indicator was missing rather than invalid.
  • OA-24 (Charges are covered under a capitation agreement/managed care plan.): Charges are covered under a capitation agreement or managed care plan.

N229 FAQ

What is an invalid contract indicator?

A value the payer does not recognise, one that does not apply to this provider or service, or an incomplete entry. The payer's companion guide lists valid values.

How is N229 different from N190?

N190 means nothing was sent. N229 means something was sent but could not be accepted.

Who should I ask about the correct value?

Your payer contracting contact or provider relations representative, since the value depends on the terms of your agreement.