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N520 Remark Code: Paid From Spending Account

N520 is an alert that payment was made from a Consumer Spending Account, such as a health savings account, flexible spending account, or health reimbursement arrangement. The account paid some or all of the member's share, so reduce the patient balance accordingly.

Quick facts

Code
N520 (RARC N520)
Status
Active In use since July 1, 2009.
Code set
Remittance Advice Remark Codes (RARC)
Group codes
  • PR (Patient Responsibility): The amount was member responsibility, and the member's spending account covered it.
Official description
Alert: Payment made from a Consumer Spending Account.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What N520 means

Where N509 through N511 describe balance checks, N520 reports an actual payment. Money came from the member’s HSA, FSA, or HRA to cover some or all of their deductible, coinsurance, or co-payment. The payer or its partner processed that payment along with the claim.

The practical effect is on the patient account: the patient owes less, or nothing, because their account paid.

What to do

  1. Identify the account payment amount, usually shown with CARC 187 on the remittance.
  2. Apply it to patient responsibility, reducing what you bill the patient.
  3. Check for overpayment if the patient paid at the visit, and refund any credit.
  4. Keep account payments separate in reporting so insurance payment rates are not overstated.

No correction or appeal is needed for this alert.

Codes that may appear with N520

  • PR-187 (Consumer Spending Account payments (includes but is not limited to Flexible Spending Account, Health Savings Account, Health Reimbursement Account,…): Consumer Spending Account payments, the adjustment usually reporting the amount paid from the account.
  • PR-1 / PR-2 / PR-3 (Deductible, coinsurance, and co-payment.): The member cost-sharing the account payment applied to.
  • N509 (Alert: A current inquiry shows the member's Consumer Spending Account contains sufficient funds to cover the member liability for this claim/service.): An earlier balance check showed sufficient funds.
  • N510 (Alert: A current inquiry shows the member's Consumer Spending Account does not contain sufficient funds to cover the member's liability for this…): A balance check showed insufficient funds.
  • N367 (Alert: The claim information has been forwarded to a Consumer Spending Account processor for review; for example, flexible spending account or…): The claim was forwarded to a spending account processor for review.

N520 FAQ

How do I post an N520 payment?

Apply the spending account payment to the patient's portion, not as additional insurance payment on the allowed amount. The remittance adjustment codes show how much was paid from the account.

Can I also collect from the patient?

Only for any remaining balance after the account payment. Collecting the full amount again would overpay you.

What if the patient already paid at the visit?

Then the patient may have a credit. Refund it according to your policy.