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N372 Remark Code: Only Necessary Maintenance Is Covered

N372 means the payer only covers maintenance or servicing charges that are reasonable and necessary. Some or all of the billed maintenance or service charge was found not to meet that standard.

Code: N372 (RARC N372)
Status: Active In use since August 1, 2006.
Code set: Remittance Advice Remark Codes (RARC)
Group codes: CO (Contractual Obligation): The unsupported portion is a supplier adjustment unless the supplier gave the patient required advance notice.
PR (Patient Responsibility): Where the patient agreed in advance to pay for service beyond what the plan covers, the amount may be assigned to the patient under plan rules.
Official description: Only reasonable and necessary maintenance/service charges are covered.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified: September 24, 2026 against the official X12 list.

What N372 means

When a patient owns medical equipment, payers may cover servicing and maintenance, but only to a point. N372 says the payer reviewed the maintenance or service charge and decided some or all of it wasn’t reasonable and necessary. It may have judged the work routine, excessive, too costly, or not needed for the patient’s medical use of the item.

The remark often explains CARC 50 or CARC 96, or CARC 45 when only part of the charge was allowed.

Common causes

Maintenance was billed on a schedule rather than when the equipment actually needed service.
The equipment was still rented, and the payer considers maintenance included in the rental.
Labor time billed exceeded what the payer considers reasonable for the task.
The work was cosmetic or convenience-related, not required for function.
Documentation didn’t explain what was wrong or what was done.

What to do

Review the service record: the problem reported, work performed, parts, and labor time.
Check the payer’s maintenance and repair policy for the item, including whether it’s rented or owned.
If documentation was thin, appeal with a detailed service report and practitioner support where needed.
If the work was routine or excessive under the policy, write off the amount or bill the patient only if an advance notice was signed and the plan allows it.
For recurring issues, consider whether repair or replacement is more appropriate and check coverage first.

How to prevent it

Bill maintenance only for documented need, and keep a standard service report that records the fault, labor time, and parts. Check ownership status before sending service claims, and explain likely coverage limits to patients before non-urgent work.

Codes that may appear with N372

CO-50 (These are non-covered services because this is not deemed a 'medical necessity' by the payer.): The service was not deemed medically necessary by the payer.
CO-96 (Non-covered charge(s).): Non-covered charges, used when the maintenance falls outside coverage.
CO-45 (Charge exceeds fee schedule/maximum allowable or contracted/legislated fee arrangement.): The charge exceeded the fee schedule or allowable amount, used when only part of the charge is reasonable.

N218 (You must furnish and service this item for as long as the patient continues to need it.): Explains supplier obligations to furnish and service an item and what maintenance the payer pays for.
N171 (Payment for repair or replacement is not covered or has exceeded the purchase price.): Used when repair or replacement is not covered or exceeds the purchase price.
N371 (Alert: title of this equipment must be transferred to the patient.): An alert that equipment title must transfer to the patient, which affects who is responsible for maintenance.

N372 FAQ

What counts as reasonable and necessary maintenance?

Generally, service needed to keep patient-owned equipment working for the patient's medical needs, performed at a reasonable cost. Routine upkeep the patient can do, or cosmetic work, usually doesn't qualify.

Does N372 apply to rented equipment?

Rental payments often already include maintenance, so separate service charges on rented items are commonly denied. Check the payer's policy for the item.

How do I support a maintenance claim?

Document the problem, the work performed, parts and labor, and why the service was needed for the patient to keep using the equipment.

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