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N687 Remark Code: Reversal After Retro Disenrollment

N687 is an alert that the payer reversed a previously processed claim because the patient was disenrolled retroactively. Coverage was ended back to a date before the service, so the payer is taking back its payment and the claim needs another payer.

Quick facts

Code
N687 (RARC N687)
Status
Active In use since November 1, 2013; last modified March 14, 2014.
Code set
Remittance Advice Remark Codes (RARC)
Group codes
  • CO (Contractual Obligation): On the reversal, the original payment and adjustments are backed out. Any new denial for no coverage is typically reported with its own reason and group code.
  • PR (Patient Responsibility): Some payers assign the reprocessed amount to the patient because there was no coverage. Look for other coverage before billing the patient.
Official description
Alert: This reversal is due to a retroactive disenrollment.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What N687 means

You were paid, and now the payer wants the money back. N687 explains why: after the claim was processed, the patient’s enrollment was terminated with an effective date that reaches back before your date of service. As far as the payer is concerned, the patient wasn’t covered, so the original payment is reversed.

Reversals often show up as negative amounts on a later remittance, and the payer may recover the money by offsetting it against future payments rather than asking for a check.

What to do

  1. Match the reversal to the original claim and payment so your posting reflects the takeback.
  2. Verify eligibility for the date of service and note the termination date the payer now has.
  3. Find the right payer. Ask the patient what coverage replaced this plan, and check for Medicaid or Medicare enrollment.
  4. Bill the new payer promptly, including the reversal to explain the late submission. Timely filing clocks may be tight; see the timely filing guide.
  5. Bill the patient only if there was truly no coverage and your financial policy allows it.

Codes that may appear with N687

  • PR-27 (Expenses incurred after coverage terminated.): Expenses incurred after coverage terminated, the typical reason on the reprocessed claim.
  • CO-88Deactivated (Adjustment amount represents collection against receivable created in prior overpayment.): The reversal creates a receivable that the payer may recover from a later payment.
  • N698 (Alert: This reversal is due to non-payment of the health insurance premiums (Health Insurance Exchange or other) by the end of the premium payment…): A reversal due to loss of coverage for unpaid premiums after the grace period.
  • N696 (Alert: This reversal is due to a Coordination of Benefits or Third Party Liability Recovery retroactive adjustment.): A reversal due to a coordination of benefits or third-party liability recovery.
  • CO-28Deactivated (Coverage not in effect at the time the service was provided.): Coverage was not in effect when the service was provided.

N687 FAQ

Why would coverage be ended retroactively?

Common reasons include late notice of a job change, a change in eligibility for a government program, or enrollment in a different plan. Retroactive terminations are limited by law in some situations, and the rules vary by type of coverage.

Where should I bill the claim now?

Ask the patient what coverage they had on the date of service, such as a new employer plan, Medicaid, or Medicare, and bill that payer with the reversal attached.

Can I dispute a retroactive disenrollment?

The provider usually cannot change the enrollment decision, but the patient or employer may be able to. If you believe the termination date is wrong, ask the patient to contact the plan.