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N672 Remark Code: Health Insurance Offset Applied

N672 is an alert that the payer applied part of the claim amount to a health insurance offset. In practice, the payer reduced what it owes by an amount it attributes to the patient's health insurance, as its policy or the governing rules allow.

Code: N672 (RARC N672)
Status: Active In use since July 15, 2013.
Code set: Remittance Advice Remark Codes (RARC)
Group codes: OA (Other Adjustment): The offset amount is attributed to other coverage rather than written off by the provider or billed to the patient. Look to the health plan for that portion.
CO (Contractual Obligation): Some payers report the offset with a contractual adjustment. Confirm with the payer where the offset amount is expected to be collected.
Official description: Alert: Amount applied to Health Insurance Offset.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified: September 24, 2026 against the official X12 list.

What N672 means

Some coverage is designed to pay only what the patient’s health insurance does not. When that coverage processes a claim, it may subtract, or offset, the portion it considers the health plan’s responsibility. N672 is the alert that such an offset was applied to this claim.

The remark is informational. It explains why the payment is lower than the allowed amount, and it tells you where the rest of the money is expected to come from.

What to do

Identify the offset amount on the remittance and the adjustment group it was reported under.
Bill the patient’s health plan for that portion if you haven’t already, including this payer’s remittance if the health plan needs it to coordinate.
Reconcile both payments. If the health plan already paid, make sure the offset matches what it actually paid, and ask the first payer to reprocess if it doesn’t.
Check the order of payers. Which coverage pays first after an accident depends on state law and the policies involved; see the eligibility and COB guide.

No corrected claim is needed unless the payer’s offset was based on wrong information about the patient’s health coverage.

Codes that may appear with N672

OA-23 (The impact of prior payer(s) adjudication including payments and/or adjustments. (Use only with Group Code OA)): The impact of prior payer adjudication, used when the health plan has already processed the claim.

N598 (Health care policy coverage is primary.): The health care policy is primary for this claim.
OA-22 (This care may be covered by another payer per coordination of benefits.): The care may be covered by another payer under coordination of benefits.

N672 FAQ

Where is N672 usually seen?

Mostly on property and casualty claims such as auto medical benefits, where the policy or state law coordinates with the patient's health insurance. How the offset works varies by state and policy.

Should I bill the patient for the offset amount?

Not before billing the health plan. The offset assumes health insurance is responsible for that portion; bill the patient only for cost-sharing the health plan assigns.

What if the patient has no health insurance?

Tell the payer that applied the offset. If it based the offset on coverage that doesn't exist, ask it to reprocess the claim without the offset.

Important: read before using this information

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