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N587 Remark Code: Policy Benefits Exhausted

N587 means the benefits available under the policy have been exhausted. The payer has paid up to its limit for this coverage, so any remaining charges must go to another payer or, where allowed, to the patient.

Quick facts

Code
N587 (RARC N587)
Status
Active In use since July 15, 2013.
Code set
Remittance Advice Remark Codes (RARC)
Group codes
  • PR (Patient Responsibility): With no benefits left, the amount may be the patient's responsibility, subject to other coverage and state rules.
  • OA (Other Adjustment): The payer's obligation has ended. The balance should move to the next available coverage.
Official description
Policy benefits have been exhausted.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What N587 means

Many insurance coverages, especially auto medical benefits, pay only up to a fixed dollar amount. When that amount is used up, the payer stops paying. N587 tells you this policy has reached that point, so the charges on this claim will not be paid by this payer.

It is often paired with CARC 119 (benefit maximum reached), CARC 35 (lifetime maximum), or CARC P21 on PIP and medical payments claims.

Why providers get surprised

  • Several providers draw from one limit. Emergency, hospital, imaging, and therapy bills all count, and the order bills arrive can decide who gets paid.
  • Payments may have gone elsewhere, such as to the patient or an attorney.
  • Limits can be low, especially for medical payments coverage.

What to do

  1. Request an exhaustion letter or payment ledger from the payer.
  2. Bill the next payer, usually the patient’s health insurance, with the exhaustion documentation. Check that payer’s filing limits right away. See timely filing denials.
  3. Update the patient’s account so future visits for the injury are billed to the new payer.
  4. Bill the patient only when no other coverage exists and state law and your policies allow it.

How to prevent it

For accident cases, ask the adjuster for the remaining benefit balance at intake and periodically during treatment. Collect the patient’s health insurance up front so switching payers is quick when the limit runs out.

Codes that may appear with N587

  • PR-119 (Benefit maximum for this time period or occurrence has been reached.): The benefit maximum for this period or occurrence has been reached.
  • CO-35 (Lifetime benefit maximum has been reached.): The lifetime benefit maximum has been reached.
  • CO-P21 (Payment denied based on the Medical Payments Coverage (MPC) and/or Personal Injury Protection (PIP)): Denied under PIP or medical payments rules, often once the limit is used.
  • N579 (Medical Payments Coverage (MPC).): Identifies Medical Payments Coverage, which often has a low limit.
  • N577 (Personal Injury Protection (PIP)): Identifies Personal Injury Protection coverage.
  • N585 (Benefits are no longer available based on a final injury settlement.): Benefits ended because of a final injury settlement.

N587 FAQ

How do I confirm benefits are really exhausted?

Ask the payer for a payment log showing what was paid and to whom. Payments to other providers, such as a hospital or ambulance, often count toward the same limit.

Who should I bill next?

Usually the patient's health insurance, or another applicable auto or liability policy. Include the exhaustion letter or remittance if the next payer asks for it.

Can N587 appear on a health plan claim?

It can, but it is most common on auto and other property and casualty claims, where policies have a fixed dollar limit.