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N694 Remark Code: Reversal for a Corrected Claim

N694 is an alert that the payer reversed the original claim because the provider resubmitted or changed it. The original processing is backed out and the corrected claim is processed in its place.

Code: N694 (RARC N694)
Status: Active In use since November 1, 2013.
Code set: Remittance Advice Remark Codes (RARC)
Group codes: CO (Contractual Obligation): The original payment and adjustments are reversed. The replacement claim carries its own contractual adjustments.
PR (Patient Responsibility): Patient responsibility from the original claim is reversed and recalculated on the replacement.
Official description: Alert: This reversal is due to a resubmission/change to the claim by the provider.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified: September 24, 2026 against the official X12 list.

What N694 means

When you correct a claim, the payer doesn’t edit the original in place. It backs out the original processing and adjudicates your replacement as the new version of the claim. N694 is attached to that backing-out step, telling you the reversal happened because of your resubmission or change.

The reversal and the replacement usually appear together on the same remittance, though they may be split across remittances.

What to do

Find the replacement claim on the remittance and post it together with the reversal, so the net change is clear.
Confirm every line on the replacement was processed as you intended. A replacement overrides the whole original, so omitted lines are treated as removed.
Update the patient balance from the replacement’s PR amounts.
Investigate unexpected reversals if nobody on your team sent a correction.

Getting replacements right

Payers generally expect the complete corrected claim, not just the changed line, with resubmission code 7 and the original claim number. Sending a correction as a brand-new claim often produces a duplicate denial instead of a replacement. A Claims Validator check before resubmitting helps confirm the corrected claim is complete.

Codes that may appear with N694

CO-129 (Prior processing information appears incorrect.): Prior processing information appears incorrect, as the replacement changes the original data.

N693 (Alert: This reversal is due to a cancellation of the claim by the provider.): The provider cancelled the claim outright rather than replacing it.
OA-18 (Exact duplicate claim/service (Use only with Group Code OA except where state workers' compensation regulations requires CO)): An exact duplicate claim, which can occur when a correction is sent as a new original instead of a replacement.
N690 (Alert: This reversal is due to a provider submitted appeal.): A reversal triggered by a provider appeal rather than a corrected claim.

N694 FAQ

How do I send a replacement claim?

On a professional claim, use resubmission code 7 in box 22 with the payer's original claim number, and include the full corrected claim, not just the changed line.

Why is the new payment smaller than expected?

The replacement is processed from scratch, so every line is re-adjudicated. Check whether a line you didn't intend to change was dropped or altered.

What if I never sent a correction?

Contact the payer. The reversal may have been triggered by another submission, such as one from a clearinghouse or billing vendor.

Important: read before using this information

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