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N41 Remark Code (Deactivated): Authorization Denied

N41 meant the authorization request for the service had been denied. X12 deactivated it and suggested reason code 39, which says services were denied at the time authorization or pre-certification was requested.

X12 deactivated RARCN41 on October 16, 2003. Payers should no longer use it on new remittances, but it can still appear on older ERAs, corrected claims, and appeals.

Code: N41 (RARC N41)
Status: Deactivated StoppedOctober 16, 2003 (in use since January 1, 2000).
Code set: Remittance Advice Remark Codes (RARC)
Group codes: CO (Contractual Obligation): Accompanied CO denials; the provider could not collect without a valid authorization.
PR (Patient Responsibility): Sometimes paired with PR where the patient agreed to pay after being told the service was not authorized.
Official description: Authorization request denied.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified: September 24, 2026 against the official X12 list.

What N41 meant

Remark N41 told the provider that it had asked the payer for authorization and the payer had refused. The claim was denied because the service was performed without approval, and the refusal was already on record.

What replaced it

X12’s note suggests reason code 39. CO-39 says services were denied at the time authorization was requested, so the adjustment code now carries N41’s message. For authorization that was never obtained, payers use CO-197; for services beyond what was approved, CO-198.

If you still see N41

It only appears in older data. For a current denied-authorization case, the path is the authorization appeal or peer-to-peer review process, supported by clinical documentation. If the authorization is overturned, request reprocessing of the claim.

CO-39 (Services denied at the time authorization/pre-certification was requested.): The suggested replacement: services denied at the time authorization or pre-certification was requested.
CO-197 (Precertification/authorization/notification/pre-treatment absent.): Precertification or authorization absent.
CO-198 (Precertification/notification/authorization/pre-treatment exceeded.): Precertification or authorization exceeded.

N41 FAQ

How is a denied authorization different from a missing one?

A missing authorization means none was requested. A denied authorization means the provider asked and the payer said no, which usually requires an authorization appeal rather than a claim correction.

Can the patient be billed?

Only if the plan and your agreements allow it and the patient agreed in advance, for example with a signed financial waiver. Otherwise it is usually a write-off.

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