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N541 Remark Code: Insurance Type Code Mismatch

N541 means the insurance type code submitted on the claim does not match the information the payer has stored. The code describes the kind of coverage involved, for example the reason Medicare is secondary, and the payer's records show something different.

Quick facts

Code
N541 (RARC N541)
Status
Active In use since November 1, 2010.
Code set
Remittance Advice Remark Codes (RARC)
Group codes
  • CO (Contractual Obligation): The mismatch is a claim data or coordination issue the provider can fix. Do not bill the patient.
Official description
Mismatch between the submitted insurance type code and the information stored in our system.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What N541 means

Electronic claims carry an insurance type code that describes the coverage situation. It matters most when Medicare is the secondary payer: the code tells Medicare why another plan pays first, such as current employment, disability with a large employer plan, end-stage renal disease, or an accident covered by liability or no-fault insurance.

N541 says the code you sent does not agree with the payer’s records. Medicare may show the patient’s primary coverage as being employment based, for example, while the claim reports a different MSP type.

Common causes

  • A default insurance type code in the billing system applied to every Medicare secondary claim.
  • The patient’s MSP situation changed, such as retirement, and the account was not updated.
  • The MSP questionnaire was incomplete, so staff guessed the type.
  • The payer’s records are outdated.

How to fix it

  1. Review the patient’s MSP questionnaire and current coverage details.
  2. Check the payer’s records through eligibility tools or provider services to see which coverage type it has.
  3. Correct the claim if your code was wrong, and resubmit it.
  4. Update the payer’s records through the proper channel if they are wrong, then resubmit after the change takes effect.
  5. Apply the fix to other open claims for the same patient.

How to prevent it

Remove default insurance type codes from your billing setup and require the MSP questionnaire before Medicare secondary claims are released. A Claims Validator rule can block Medicare secondary claims that have no insurance type code or one that conflicts with the questionnaire.

Codes that may appear with N541

  • CO-16 (Claim/service lacks information or has submission/billing error(s).): The claim contained invalid information; the invalid element is the insurance type code.
  • OA-22 (This care may be covered by another payer per coordination of benefits.): The payer's records show different coordination of benefits information.
  • MA83 (Did not indicate whether we are the primary or secondary payer.): The claim did not indicate whether the payer is primary or secondary.
  • N245 (Incomplete/invalid plan information for other insurance.): Plan information for the other insurance is incomplete or invalid.
  • N48 (Claim information does not agree with information received from other insurance carrier.): Claim information does not agree with information received from the other insurance carrier.

N541 FAQ

What is an insurance type code?

It is a code on the electronic claim that identifies the kind of coverage. When Medicare is secondary, it identifies why, such as working aged, disability with a large group plan, end-stage renal disease, or liability or no-fault coverage.

Where does the payer get its information?

For Medicare, other-coverage information is maintained by its coordination of benefits contractor. Commercial payers rely on their own COB records.

What if Medicare's records are wrong?

The beneficiary, or in some cases the provider, can report corrections to Medicare's coordination of benefits contractor. Claims may keep denying until the records are updated.