N396 Remark Code: Incomplete or Invalid Lab Report
N396 means the payer received a laboratory report for the claim, but it was incomplete or invalid, so it could not be used to support the service billed.
Quick facts
- Code
- N396 (RARC N396)
- Status
- Active In use since August 1, 2007.
- Code set
- Remittance Advice Remark Codes (RARC)
- Group codes
-
- CO (Contractual Obligation): The claim stays denied until an acceptable lab report is received. The provider resends it; the patient is not billed.
- Official description
Incomplete/invalid laboratory report.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026- Last verified
- against the official X12 list.
What N396 means
N396 is sent after a lab report was received and reviewed. The reviewer couldn’t rely on it, either because information was missing or because the report didn’t fit the claim.
It usually pairs with CARC 251, or with CARC 250 when the payer got a document other than the one it asked for.
Why a lab report gets rejected
| Problem | Example |
|---|---|
| Missing patient identifiers | Report shows a first name only, or no date of birth |
| Missing collection date | Only the report print date is visible |
| Wrong test | A panel was sent when the payer asked for a specific value |
| Out-of-window date | Test was too old for the payer’s policy |
| No reference range or units | Result can’t be interpreted |
| Illegible or partial copy | Cropped fax or faded scan |
How to fix it
- Read the denial or request to see what the payer found lacking.
- Pull the original lab report from the laboratory system rather than a transcription in the clinical note.
- Confirm the report matches the patient, the test the payer wants, and the date window.
- Resend it through the payer’s attachment process, with a cover note naming the claim and the specific result that supports coverage.
- If the only available report falls outside the payer’s rules, check whether a new test is needed for future services.
How to prevent it
When your team attaches lab reports, have them check for the six items in the table above before sending. Retrieve reports from the lab interface rather than retyping results, and keep payer-specific time windows in your policy notes.
Codes that may appear with N396
- CO-251 (The attachment/other documentation that was received was incomplete or deficient.): The attachment received was incomplete or deficient.
- CO-250 (The attachment/other documentation that was received was the incorrect attachment/document.): The attachment received was the wrong document, when a different report was expected.
Related and easily confused codes
- N395 (Missing laboratory report.): Used when no laboratory report was received.
- N468 (Incomplete/invalid Report of Tests and Analysis Report.): Covers an incomplete or invalid tests and analysis report.
- N206 (The supporting documentation does not match the information sent on the claim.): Says the supporting documentation doesn't match the information on the claim.
N396 FAQ
What details must a lab report include?
At a minimum, the patient's name and identifier, the collection date, the test performed, the result with units, and the reference range. Some payers also look for the performing lab's name.
What if the report is for the wrong date?
Send the report that falls within the payer's required window. If none does, a new test may be needed before the service can be covered.
Is a handwritten result acceptable?
Payers generally prefer the laboratory's printed or electronic report. A handwritten transcription is more likely to be rejected.