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N698 Remark Code: Reversal for Unpaid Premiums

N698 is an alert that the payer reversed a claim because the member didn't pay their health insurance premiums by the end of the grace period, such as on a Health Insurance Exchange plan, and coverage ended. The payment for services in that period is taken back.

Quick facts

Code
N698 (RARC N698)
Status
Active In use since November 1, 2013; last modified November 1, 2015.
Code set
Remittance Advice Remark Codes (RARC)
Group codes
  • PR (Patient Responsibility): With coverage terminated, the reprocessed services are often assigned to the patient. Check for other coverage first.
  • CO (Contractual Obligation): The original payment and contractual adjustments are reversed as part of the takeback.
Official description
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 grace period, resulting in loss of coverage.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What N698 means

When a member stops paying premiums, many plans don’t cancel coverage immediately. They allow a grace period. For Exchange members receiving advance premium tax credits, federal rules provide a three-month grace period, and plans may pay claims during the first month while pending claims in the later months. Other plans have their own grace rules.

If the member never catches up, coverage ends and the payer may take back payments for services that fall in the unprotected part of the grace period. N698 marks those reversals.

What to do

  1. Post the reversal and note the coverage end date the payer used.
  2. Check for other coverage on the date of service, such as Medicaid, a new employer plan, or a different Exchange plan.
  3. Contact the patient, explain that their plan ended for non-payment, and ask about any new coverage.
  4. Bill another payer if one applies, attaching the reversal.
  5. Bill the patient for the reversed services if no other coverage exists, under your financial policy.

If grace-period alerts such as N615 appear on a patient’s claims, consider talking to the patient about payment arrangements or verifying coverage before non-urgent visits.

Codes that may appear with N698

  • PR-27 (Expenses incurred after coverage terminated.): Expenses incurred after coverage terminated.
  • CO-88Deactivated (Adjustment amount represents collection against receivable created in prior overpayment.): The recovered amount may be deducted from a later payment.
  • N615 (Alert: This enrollee receiving advance payments of the premium tax credit is in the grace period of three consecutive months for non-payment of…): Alert that the enrollee is in the three-month grace period for advance premium tax credit recipients.
  • N619 (Coverage terminated for non-payment of premium.): Coverage terminated for non-payment of premium.
  • OA-257 (The disposition of the claim/service is undetermined during the premium payment grace period, per Health Insurance Exchange requirements.): The claim's disposition is undetermined during the premium payment grace period.

N698 FAQ

Which services are affected?

Typically services in the part of the grace period after which the plan is allowed to terminate coverage. The rules for Exchange plans with premium tax credits differ from other plans, so check the plan's notice.

Can the patient get coverage back?

It depends on the plan and the rules that apply. The patient should contact the plan or the Exchange directly.

Should I bill the patient now?

After confirming there's no other coverage, yes, you can generally bill the patient for the reversed services under your financial policy.