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N692 Remark Code: Reversal to Fix Wrong Initial Rate

N692 is an alert that the payer reversed the claim because the rate it used when it first processed the claim was incorrect. The claim is reprocessed at the correct rate, which may increase or decrease the payment.

Quick facts

Code
N692 (RARC N692)
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): The original payment and contractual adjustments are backed out, and the reprocessed claim carries new adjustments at the corrected rate.
  • PR (Patient Responsibility): If the allowed amount changed, patient cost-sharing may change as well.
Official description
Alert: This reversal is due to an incorrect rate on the initial adjudication.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What N692 means

The first processing used the wrong number. Maybe the payer loaded an outdated fee schedule, used the wrong provider’s contract, applied an out-of-network rate to an in-network provider, or mapped the service to the wrong pricing category. Once it discovered the mistake, it reversed the claim and repriced it. N692 identifies the reversal as a correction of the initial rate.

Payers frequently correct systemic pricing errors in batches, so one N692 may be followed by many more.

What to do

  1. Post the reversal with its reprocessed claim so each account reflects the net result.
  2. Verify the new rate against your contract or the applicable schedule, for the correct date of service and provider.
  3. Adjust patient balances where cost-sharing changed, and issue refunds as needed.
  4. Quantify batch corrections. If many claims were reprocessed, total the net effect and confirm the payer caught every affected claim, including ones it may have missed.
  5. Dispute if the corrected rate is still wrong.

Monitoring allowed amounts against expected rates catches initial pricing errors faster than waiting for payers to find them. An ERA Analyzer that compares payments to contract rates is one way to do that.

Codes that may appear with N692

  • CO-129 (Prior processing information appears incorrect.): Prior processing information appears incorrect.
  • CO-45 (Charge exceeds fee schedule/maximum allowable or contracted/legislated fee arrangement.): The new contractual adjustment at the corrected rate.
  • N689 (Alert: This reversal is due to a retroactive rate change.): The rate changed retroactively, rather than being wrong originally.
  • N695 (Alert: This reversal is due to incorrect patient financial responsibility information on the initial adjudication.): The patient's financial responsibility was wrong on the initial adjudication.
  • CO-88Deactivated (Adjustment amount represents collection against receivable created in prior overpayment.): Collection against a receivable from a prior overpayment.

N692 FAQ

How is this different from N689?

N689 means the rate itself changed after the fact. N692 means the rate was already set, but the payer applied the wrong one the first time.

What if I disagree with the corrected rate?

Compare it to your contract or fee schedule for the date of service. If the corrected rate is still wrong, dispute it with the payer and include the contract terms.

Did I find the error or did the payer?

Either is possible. If you reported an underpayment, N692 may be the payer's fix. If you didn't, the payer likely found it in an internal review.