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N725 Remark Code: Liability Insurer Has ORM

N725 means a liability insurer has told the payer it has ongoing responsibility for medical services (ORM) related to this diagnosis. The payer expects that liability insurer to be billed first for care tied to the injury.

Quick facts

Code
N725 (RARC N725)
Status
Active In use since March 1, 2014.
Code set
Remittance Advice Remark Codes (RARC)
Group codes
  • CO (Contractual Obligation): The payer denies the line because another insurer is primary for this diagnosis. It is not patient responsibility.
  • OA (Other Adjustment): Some payers report the other-payer situation with OA. Treat it as a coordination issue, not a balance to bill the patient.
Official description
A liability insurer has reported having ongoing responsibility for medical services (ORM) for this diagnosis.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What N725 means

Ongoing responsibility for medicals, or ORM, is a status a liability insurer reports when it has accepted responsibility to pay for an injured person’s related medical care. Medicare, in particular, receives these reports and uses them to decide when it should not be the primary payer.

N725 tells you the diagnosis on this claim matches an injury for which a liability insurer has ORM. The payer therefore denies or redirects the line, typically with CARC 20 or CARC 22, and expects you to bill the liability insurer first.

Common causes

  • The patient was hurt in an incident covered by someone else’s liability insurance, and registration did not capture it.
  • The diagnosis on the claim, perhaps a chronic condition, overlaps with the injury on file.
  • The liability insurer’s ORM ended but its report to the payer has not been updated.

How to fix it

  1. Ask the patient about the incident and get the liability insurer’s name and claim number.
  2. Bill the liability insurer for injury-related services.
  3. If the service is unrelated to the injury, review the diagnosis coding and ask the payer to reprocess.
  4. If the liability insurer denies or ORM has ended, send its response to the payer that issued N725 and request reprocessing as primary.
  5. Keep all correspondence, because resolving ORM records can take more than one contact.

How to prevent it

Record accident details and any third-party insurer for injury visits at intake, and check them before billing related follow-up care. See eligibility and COB denials for more on payer order.

Codes that may appear with N725

  • CO-20 (This injury/illness is covered by the liability carrier.): The injury or illness is covered by the liability carrier.
  • OA-22 (This care may be covered by another payer per coordination of benefits.): Another payer may cover this care under coordination of benefits.
  • N727 (A no-fault insurer has reported having ongoing responsibility for medical services (ORM) for this diagnosis.): A no-fault insurer, rather than a liability insurer, has reported ORM.
  • N728 (A workers' compensation insurer has reported having ongoing responsibility for medical services (ORM) for this diagnosis.): A workers' compensation insurer has reported ORM.
  • N723 (Patient must use Liability set-aside (LSA) funds to pay for the medical service or item.): The liability claim settled and a set-aside now pays, instead of the insurer.
  • N726 (A conditional payment is not allowed.): Often seen when the provider asks for payment while waiting on the primary; a conditional payment is not allowed.

N725 FAQ

What does ongoing responsibility for medicals mean?

It means the liability insurer has accepted that it will pay for medical care related to the injury for a period of time. Insurers report this to Medicare, and some other payers track it too.

What if the service is unrelated to the injury?

Check the diagnosis codes on the claim. If they do not relate to the injury, correct them if needed and contact the payer so it can reprocess the claim as unrelated care.

What if the liability insurer denies or stops paying?

Send the payer that issued N725 the liability insurer's denial or proof that ORM ended, and ask it to reprocess. The payer may need the insurer to update its reporting.