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N696 Remark Code: Reversal for COB or TPL Recovery

N696 is an alert that the payer reversed an earlier payment as part of a coordination of benefits (COB) or third-party liability (TPL) recovery. It found that another payer, such as a primary health plan or a liability insurer, should have paid first.

Quick facts

Code
N696 (RARC N696)
Status
Active In use since November 1, 2013; last modified March 14, 2014.
Code set
Remittance Advice Remark Codes (RARC)
Group codes
  • OA (Other Adjustment): The reversal reflects responsibility shifting to another payer. The recovered amount should be billed to that payer, not written off or billed to the patient.
  • CO (Contractual Obligation): The original contractual adjustments are backed out together with the payment.
Official description
Alert: This reversal is due to a Coordination of Benefits or Third Party Liability Recovery retroactive adjustment.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What N696 means

Payers regularly look for claims they paid but shouldn’t have paid first. A COB review may find the patient had another primary health plan. A TPL review may find an auto insurer, workers’ compensation carrier, or other liable party responsible for an injury. Government programs such as Medicaid run these recoveries routinely. When a review finds another responsible payer, the plan reverses its payment and N696 explains why.

The service is still payable; it just needs to be billed in the right order.

What to do

  1. Identify the other payer from the recovery notice, the payer, or the patient.
  2. Verify that coverage was active on the date of service and determine the correct order of payment.
  3. Bill the primary payer, including the reversal to explain the delay.
  4. Rebill the recovering payer as secondary once the primary has paid or denied, with the primary’s remittance attached.
  5. Update the patient’s insurance record so future claims go out in the right order.

For injury-related recoveries, you may need the accident date, claim number, and adjuster details. The eligibility and COB guide covers verifying coverage order before claims go out.

Codes that may appear with N696

  • OA-22 (This care may be covered by another payer per coordination of benefits.): The care may be covered by another payer per coordination of benefits.
  • CO-88Deactivated (Adjustment amount represents collection against receivable created in prior overpayment.): The recovery may be collected against a later payment.
  • N687 (Alert: This reversal is due to a retroactive disenrollment.): A reversal because the patient was retroactively disenrolled.
  • CO-109 (Claim/service not covered by this payer/contractor.): The claim is not covered by this payer and must go to the correct one.
  • CO-20 (This injury/illness is covered by the liability carrier.): The injury or illness is covered by a liability carrier.

N696 FAQ

Where do I find the other payer's information?

The reversal or a recovery letter often names it. If not, ask the payer that recovered the money and ask the patient to update their coverage information.

What if the other coverage had already ended?

Provide proof, such as a termination letter or eligibility response, to the payer that reversed the claim and ask it to reprocess as primary.

Do timely filing limits still apply to the other payer?

Yes, but many payers make allowances when a claim was first paid by another payer and later recovered. Submit quickly with the reversal attached.