Skip to main content

N377 Remark Code: Paid on Processed Replacement Claim

N377 means the payment shown is based on a replacement claim the payer processed. The original claim was replaced, and the payment amount reflects the corrected information rather than the first submission.

Quick facts

Code
N377 (RARC N377)
Status
Active In use since December 1, 2006; last modified November 5, 2007.
Code set
Remittance Advice Remark Codes (RARC)
Group codes
  • CO (Contractual Obligation): Contractual adjustments on the replacement claim follow the provider's contract as usual. The original claim's payment is usually reversed on the same or a nearby remittance.
  • OA (Other Adjustment): Some payers show the reversal of the original payment as an other adjustment. It nets against the replacement payment.
Official description
Payment based on a processed replacement claim.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What N377 means

When you send a replacement claim (frequency code 7), the payer doesn’t just add the difference. It usually reverses the original claim and processes the replacement as a full claim. N377 tells you the payment on this line is based on that replacement. It’s an explanation, not a denial.

You’ll typically see routine adjustments such as CARC 45 on the replacement lines, and sometimes CARC B13 where money was already paid under the original.

How to reconcile it

  1. Find both claims on the remittance. Look for the reversal of the original claim and the new processed claim. They may appear on the same ERA or on consecutive ones.
  2. Post the reversal and the new payment separately so your ledger shows both.
  3. Compare the net change to what your correction should have produced, such as the added units or corrected code.
  4. Update the claim number in your system to the replacement claim’s payer number for any future corrections or appeals.
  5. Follow up only if the net payment is not what you expected or the reversal is missing.

Common posting mistakes

  • Posting only the new payment and missing the reversal, which overstates collections.
  • Posting the reversal as a denial and working it as a new problem.
  • Sending another correction against the original claim number rather than the replacement.

Automatic posting rules that link reversals to their replacement claims save time here. ERA Analyzer can help spot reversal and replacement pairs that don’t net out as expected.

Codes that may appear with N377

  • CO-45 (Charge exceeds fee schedule/maximum allowable or contracted/legislated fee arrangement.): A routine fee schedule adjustment often appears on the replacement claim lines.
  • CO-B13 (Previously paid.): Previously paid; part of the payment may have been issued under the original claim.
  • MA67 (Alert: Correction to a prior claim.): An alert that this is a correction to a prior claim.
  • N152 (Missing/incomplete/invalid replacement claim information.): Used when replacement claim information is missing or invalid.
  • N779 (Replacement/Void claims cannot be submitted until the original claim has finalized.): Says replacement or void claims can't be submitted until the original claim has finalized.

N377 FAQ

Why do I see a negative payment and a positive payment?

Payers commonly reverse the original claim and pay the replacement in full. The net of the two is the change caused by your correction.

Is N377 a problem?

No. It explains how the payment was calculated. Only follow up if the net result doesn't match what you expected.

Can I submit another replacement?

Yes, if more corrections are needed, but reference the most recent claim number the payer assigned, not the original.