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N283 Remark Code: Purchased Service Provider ID

N283 means the identifier for the purchased service provider was missing, incomplete, or invalid. When you bill for a service another entity performed and you purchased, such as a diagnostic test, the payer needs to know who actually furnished it.

Code: N283 (RARC N283)
Status: Active In use since December 2, 2004.
Code set: Remittance Advice Remark Codes (RARC)
Group codes: CO (Contractual Obligation): A correctable billing error; fix the purchased service information and resubmit. The patient is not liable.
Official description: Missing/incomplete/invalid purchased service provider identifier.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified: September 24, 2026 against the official X12 list.

What N283 means

Billing for a purchased service shifts the question of “who performed this?” away from your own clinicians. Payers still want that answered, so the claim must identify the outside entity. On an electronic 837P that means reporting the purchased service provider; on paper it usually means completing box 20 and putting the supplier’s details in box 32, following the payer’s instructions. N283 appears when the supplier’s identifier is missing or unusable.

It is paired most often with CARC 16, and it is correctable.

Common causes

Box 20 was marked “yes” for an outside service, but the supplier’s NPI was not reported.
Your own NPI or the service location’s NPI was entered in place of the supplier’s.
The purchased service supplier has an inactive NPI, or one registered to a different entity.
The claim reported a purchased service when the test was actually performed in-house, confusing the payer’s edits.

How to fix it

Confirm whether the service was truly purchased from an outside supplier, and which supplier performed it.
Get the supplier’s NPI and verify it in NPPES.
On paper, complete box 20 and report the supplier in box 32 per the payer’s purchased-service instructions. Electronically, populate the purchased service provider details.
Submit a corrected claim (frequency code 7) with the original claim number.

How to prevent it

Mark purchased services at the order level so the claim can include supplier data automatically. Keep a supplier directory with NPI, address, and your purchase price for each arrangement. A pre-submission rule that requires a supplier NPI whenever a purchased service indicator is present will stop most N283 remarks. The CARC 16 guide has more on these kinds of data-driven denials.

Codes that may appear with N283

CO-16 (Claim/service lacks information or has submission/billing error(s).): Missing or invalid information; N283 points to the purchased service provider's identifier.

M133 (Claim did not identify who performed the purchased diagnostic test or the amount you were charged for the test.): The claim did not identify who performed the purchased test or the amount you were charged.
MA110 (Missing/incomplete/invalid information on whether the diagnostic test(s) were performed by an outside entity or if no purchased tests are included…): Missing or invalid indication of whether diagnostic tests were performed by an outside entity.
N275 (Missing/incomplete/invalid other payer purchased service provider identifier.): The prior payer's identifier for the purchased service provider is the problem, on a secondary claim.
N293 (Missing/incomplete/invalid service facility primary identifier.): The service facility's identifier is the problem.

N283 FAQ

What is a purchased service?

A service performed by an outside supplier that you pay for and then bill under your own claim, following the payer's rules. Purchased diagnostic tests are the most familiar example.

How do I show a purchased service on the CMS-1500?

Box 20 indicates whether an outside lab or supplier performed the service and what you were charged. Many payers, including Medicare, then want the performing supplier's name, address, and NPI in box 32.

Is N283 a sign we can't bill the purchased test?

Not by itself. It says the supplier identification was incomplete. Whether you may bill the purchased service at all depends on the payer's rules.

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