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N230 Remark Code: Unclear If Patient Owns Equipment

N230 means the claim's indication of whether the patient owns the equipment that needs the billed part or supply was incomplete or invalid. Payers often pay for parts, supplies, and repairs differently depending on whether the patient owns or rents the base equipment.

Quick facts

Code
N230 (RARC N230)
Status
Active In use since August 1, 2004.
Code set
Remittance Advice Remark Codes (RARC)
Group codes
  • CO (Contractual Obligation): The line was denied or held because the ownership information could not be accepted. The supplier corrects it; the patient is not liable.
Official description
Incomplete/invalid indication of whether the patient owns the equipment that requires the part or supply.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What N230 means

When a supplier bills a part, accessory, or supply that works with a piece of base equipment, the payer wants to know who owns that equipment. If it is rented, the rental payment usually covers upkeep. If the patient owns it, separate payment may be available. N230 says the ownership information on the claim was present but not usable. It commonly accompanies CARC 16.

Common causes

  • The narrative stating the equipment is patient-owned was incomplete, for example missing the date of purchase or the equipment type.
  • The claim described the equipment as owned, but the payer’s history shows it is still in a rental period.
  • The patient acquired the equipment through another payer or supplier, and there is no record on this payer’s file.
  • The wrong modifier or note format was used for the payer’s DME rules.

How to fix it

  1. Confirm the equipment’s history: when it was acquired, whether rental payments were completed, and whether it transferred to the patient.
  2. Check the payer’s instructions on how to indicate ownership, including required narrative and modifiers.
  3. Correct the claim with complete ownership information, such as the base equipment type and date the patient took ownership.
  4. Attach supporting records if the payer requires them.
  5. Submit a corrected claim with resubmission code 7 and the original claim number.

How to prevent it

At intake for repairs or supplies, ask how and when the patient got the base equipment and record it. Keep a standard note template for patient-owned equipment that meets each major payer’s requirements.

Codes that may appear with N230

  • CO-16 (Claim/service lacks information or has submission/billing error(s).): The claim has missing or invalid information; N230 names equipment ownership.
  • CO-97 (The benefit for this service is included in the payment/allowance for another service/procedure that has already been adjudicated.): Parts or supplies may be included in the rental payment if the equipment is rented.
  • M124 (Missing indication of whether the patient owns the equipment that requires the part or supply.): The indication of whether the patient owns the equipment was missing entirely.
  • N218 (You must furnish and service this item for as long as the patient continues to need it.): The supplier must furnish and service rented items for as long as needed.

N230 FAQ

Why does ownership matter for parts and supplies?

For rented equipment, parts and servicing are often considered part of the rental. For patient-owned equipment, payers may pay separately for repairs, replacement parts, and supplies.

How is ownership shown on a claim?

It depends on the payer, often through a narrative in the claim note field (box 19 on paper), specific modifiers, or documentation. Check the payer's DME billing instructions.

What if the patient bought the equipment from another supplier?

Document when and where it was obtained. Payers may ask for proof of purchase or a history showing the item became patient-owned.