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N585 Remark Code: Benefits Ended by Injury Settlement

N585 means the payer will not pay because benefits for this injury ended with a final injury settlement. After the settlement, the insurer considers its obligation for the injury closed, so remaining charges must be pursued elsewhere.

Quick facts

Code
N585 (RARC N585)
Status
Active In use since July 15, 2013.
Code set
Remittance Advice Remark Codes (RARC)
Group codes
  • OA (Other Adjustment): The carrier's liability ended with the settlement. Payment may need to come from another source.
  • PR (Patient Responsibility): The patient may be responsible, for example when the settlement was meant to cover future medical costs. State law and any settlement terms matter.
Official description
Benefits are no longer available based on a final injury settlement.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What N585 means

Injury claims under workers’ compensation, auto, or liability coverage can be resolved with a final settlement, often a lump sum that closes the insurer’s future obligations. N585 says the claim you billed is covered by such a settlement, so the insurer is no longer paying medical benefits for this injury.

It commonly appears with CARC P3 (WC case settled; patient responsible through a set-aside or agreement), CARC 215, or CARC P6.

Common causes

  • The service date is after the settlement date, and the settlement closed future medical benefits.
  • The provider was not told about the settlement and kept billing the carrier.
  • The settlement reserved some benefits but not the ones billed.

What to do

  1. Confirm the settlement date and terms with the adjuster, including whether any medical benefits remain open.
  2. Compare service dates. Bills for care before the settlement may still be payable.
  3. Talk to the patient or their attorney about how post-settlement care is to be paid, including any set-aside funds.
  4. Check other coverage carefully. Health plans and Medicare may have exclusions or recovery rights for settled injuries.
  5. Write off or transfer the balance according to what you learn and your financial policy.

How to prevent it

For ongoing injury cases, ask the patient and adjuster periodically about settlement status, and flag accounts when a settlement is approaching so billing changes before new services are rendered.

Codes that may appear with N585

  • PR-P3 (Workers' Compensation case settled.): A workers' compensation settlement leaves the patient responsible through a set-aside or other agreement.
  • CO-215 (Based on subrogation of a third party settlement): Adjustment based on subrogation of a third-party settlement.
  • CO-P6 (Based on entitlement to benefits.): Denied based on entitlement to benefits.
  • N664 (Adjusted based on a legal settlement.): Adjusted based on a legal settlement.
  • N587 (Policy benefits have been exhausted.): Policy benefits have been exhausted.
  • N624 (The associated Workers' Compensation claim has been withdrawn.): The associated workers' compensation claim has been withdrawn.

N585 FAQ

Can the patient's health plan pay after a settlement?

Sometimes, but some plans exclude care that a settlement was intended to cover or seek reimbursement from settlement proceeds. Check with the health plan before billing.

What about Medicare patients?

Medicare has specific secondary payer rules for settlements, including set-aside arrangements in some workers' compensation cases. Confirm how the settlement was structured before billing Medicare.

What if the service happened before the settlement?

Tell the carrier the date of service. Care provided before the settlement date may still be payable depending on the settlement terms.