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N724 Remark Code: No-Fault Set-Aside Must Pay

N724 means the patient has a No-Fault Set-Aside (NFSA) from a settled no-fault insurance claim, usually after an auto accident, and must use those funds for this related service. The payer that issued N724 is not paying it.

Quick facts

Code
N724 (RARC N724)
Status
Active In use since March 1, 2014.
Code set
Remittance Advice Remark Codes (RARC)
Group codes
  • PR (Patient Responsibility): The payer treats the amount as patient responsibility, to be paid from the no-fault set-aside funds.
Official description
Patient must use No-Fault set-aside (NFSA) funds to pay for the medical service or item.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What N724 means

No-fault coverage pays accident-related medical bills without deciding who was at fault. When a no-fault claim ends in a settlement, some of the proceeds can be reserved for the person’s future accident-related care: a No-Fault Set-Aside. N724 says the payer has one on file and has matched this service to the accident.

The payer does not pay and moves the balance to the patient, generally with CARC 201 under group PR. The set-aside account is the intended source of payment.

Common causes

  • The patient is being treated for ongoing effects of an auto accident whose no-fault claim settled.
  • Registration captured the health plan but not the accident history.
  • Diagnosis coding tied the visit to the accident even though the treatment was for something else.

What to do

  1. Ask the patient whether an accident claim settled and who holds the set-aside funds.
  2. Review whether the service treats the accident injury. If it does not, correct any misleading diagnosis coding and ask the payer to reprocess.
  3. Bill the set-aside through the patient or administrator.
  4. If the funds have been used up, obtain documentation and ask the payer how it wants that shown before resubmitting.

How to prevent it

For any visit involving an accident, record the accident date, the no-fault carrier, and whether the claim is open or settled. That one step tells billers whether to send claims to the no-fault carrier, the set-aside, or the health plan.

Codes that may appear with N724

  • PR-201 (Patient is responsible for amount of this claim/service through 'set aside arrangement' or other agreement. (Use only with Group Code PR)): Patient responsibility through a set-aside arrangement, identified by N724 as no-fault.
  • CO-21 (This injury/illness is the liability of the no-fault carrier.): The injury or illness is the no-fault carrier's liability, the coverage that produced the set-aside.
  • N727 (A no-fault insurer has reported having ongoing responsibility for medical services (ORM) for this diagnosis.): The no-fault insurer still reports ongoing responsibility, so bill the no-fault carrier rather than a set-aside.
  • N722 (Patient must use Workers' Compensation Set-Aside (WCSA) funds to pay for the medical service or item.): A set-aside from a workers' compensation settlement.
  • N723 (Patient must use Liability set-aside (LSA) funds to pay for the medical service or item.): A set-aside from a liability settlement.
  • N744 (Adjusted because the services may be related to an auto/other accident.): The payer only suspects an auto or other accident and wants that resolved.

N724 FAQ

What is no-fault insurance?

No-fault coverage, often called personal injury protection or PIP in auto policies, pays medical costs after an accident regardless of who caused it. Rules and limits vary by state.

Why would no-fault benefits be set aside?

When a no-fault claim is resolved with a settlement, part of the money may be reserved for future related medical care so that other payers, such as Medicare, are not billed first.

Can I resubmit to the payer after N724?

Only if the service is unrelated to the accident or the set-aside has been properly exhausted. In either case, contact the payer first to learn what it needs.