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N553 Remark Code (Deactivated): LIS Retroactive Change

N553 meant payment was adjusted because of a retroactive change in a patient's Low Income Subsidy (LIS) coverage or status. X12 deactivated it without naming a replacement.

X12 deactivated RARCN553 on November 1, 2012. Payers should no longer use it on new remittances, but it can still appear on older ERAs, corrected claims, and appeals.

Code: N553 (RARC N553)
Status: Deactivated StoppedNovember 1, 2012 (in use since March 6, 2012).
Code set: Remittance Advice Remark Codes (RARC)
Group codes: PR (Patient Responsibility): LIS status affects the patient's cost-sharing, so adjustments often involved patient responsibility.
CO (Contractual Obligation): Could also accompany CO adjustments when the change affected the payer's share.
Official description: Payment adjusted based on a Low Income Subsidy (LIS) retroactive coverage or status change.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified: September 24, 2026 against the official X12 list.

What N553 meant

Remark N553 explained a recalculation. A patient’s Low Income Subsidy coverage or status had changed retroactively, so a claim processed earlier was adjusted to reflect the new cost-sharing. It was mainly relevant to pharmacies and others billing Medicare Part D plans.

What replaced it

X12 did not name a successor, and the remark was active only for a matter of months. Related active codes include CARC CO-241 for the LIS co-payment amount and CO-129 when prior processing appears incorrect. Remark N751 identifies claims adjusted because the patient has Part D coverage.

If you still see N553

It exists only in a small amount of older data. When reconciling such an adjustment, compare the patient’s cost-sharing before and after the change and refund or bill the patient for the difference as the plan’s rules require.

CO-241 (Low Income Subsidy (LIS)): Low Income Subsidy co-payment amount.
CO-129 (Prior processing information appears incorrect.): Prior processing information appears incorrect.
N751 (Adjusted because the patient is covered under a Medicare Part D plan.): Adjusted because the patient is covered under a Medicare Part D plan.

N553 FAQ

What is the Low Income Subsidy?

A Medicare Part D program, often called Extra Help, that lowers premiums and cost-sharing for eligible beneficiaries. Changes in LIS status can change what the patient owes.

Why would a retroactive change cause an adjustment?

If LIS status is granted or changed for past dates, claims already processed for those dates may need to be recalculated, changing the patient's and plan's shares.

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