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N507 Remark Code: Plan Distance Requirement Not Met

N507 means the plan's distance requirements were not met for this service. The plan has a rule tied to distance, for example the distance between the member and a provider or facility, or a mileage condition for a benefit, and the claim did not satisfy it.

Quick facts

Code
N507 (RARC N507)
Status
Active In use since November 1, 2008.
Code set
Remittance Advice Remark Codes (RARC)
Group codes
  • CO (Contractual Obligation): The provider generally absorbs the adjustment when a plan rule the provider should have checked was not met.
  • PR (Patient Responsibility): When the plan treats the service as a benefit limitation for the member, the amount may be assigned to the patient under the plan's terms.
Official description
Plan distance requirements have not been met.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What N507 means

Some plan benefits depend on distance. A plan might cover out-of-network care only when no network provider is available within a certain range of the member’s home, reimburse travel only beyond a threshold, or limit transport to the nearest appropriate facility. N507 tells you the claim failed one of those distance conditions.

The official text does not say which rule, and plans define distance requirements differently. Read it alongside the reason code, commonly CARC 272 or CARC 96, and the plan’s benefit documents.

Common causes

  • A network provider was available within the plan’s distance limit, so an out-of-network exception did not apply.
  • The member’s address on file differs from where they actually live, changing the calculated distance.
  • A transport claim went to a facility farther away than the nearest one able to provide the care.
  • A travel or lodging benefit was claimed when the distance threshold was not reached.

How to fix it

  1. Ask the payer which distance rule it applied and how it measured distance.
  2. Verify the addresses used: member, provider or facility, and pickup or destination for transport.
  3. Correct the claim if an address, place of service, or facility identifier was wrong, and resubmit as a corrected claim (resubmission code 7).
  4. Appeal with evidence if the rule was met or an exception should apply, such as no available closer provider with the needed expertise.
  5. Check your contract before billing the patient; network agreements may restrict it.

How to prevent it

For services that depend on network adequacy or travel benefits, confirm the plan’s distance rules and get any exception approved before the service. Keeping patient addresses current at every visit prevents miscalculated distances.

Codes that may appear with N507

  • CO-272 (Coverage/program guidelines were not met.): Coverage or program guidelines were not met; N507 identifies the guideline as a distance rule.
  • CO-96 (Non-covered charge(s).): Non-covered charge, with N507 as the explanation.
  • CO-117 (Transportation is only covered to the closest facility that can provide the necessary care.): Transportation is covered only to the closest facility that can provide the necessary care.
  • N157 (Transportation to/from this destination is not covered.): Transportation to or from this destination is not covered.
  • N130 (Consult plan benefit documents/guidelines for information about restrictions for this service.): Points to plan documents for the specific benefit restriction.
  • CO-242 (Services not provided by network/primary care providers.): Services were not provided by network or primary care providers.

N507 FAQ

What kinds of distance rules do plans use?

It varies. Examples include benefits that apply only when a member lives more than a set distance from a network provider, travel benefits for distant treatment centers, and transport rules tied to the nearest facility. The plan's documents define the rule.

How do I find out which rule applied?

Call the payer and ask which distance requirement was applied and what measurement it used. The remittance alone usually does not say.

Can I appeal N507?

Yes, if you can show the requirement was met, for example with addresses, mileage documentation, or evidence that no closer option was available.