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N742 Remark Code (Deactivated): ICD-9 Transition Alert

N742 was an alert that the claim was processed based on one or more ICD-9 codes, reminding providers that the transition to ICD-10 was required. X12 deactivated it once the transition was complete, without naming a replacement.

X12 deactivated RARCN742 on November 1, 2016. Payers should no longer use it on new remittances, but it can still appear on older ERAs, corrected claims, and appeals.

Quick facts

Code
N742 (RARC N742)
Status
Deactivated StoppedNovember 1, 2016 (in use since March 1, 2015).
Code set
Remittance Advice Remark Codes (RARC)
Group codes
  • CO (Contractual Obligation): An informational alert that could accompany any adjustment; it did not itself change payment.
Official description
Alert: This claim was processed based on one or more ICD-9 codes. The transition to ICD-10 is required by October 1, 2015, for health care providers, health plans, and clearinghouses. More information can be found at http://www.cms.gov/Medicare/Coding/ICD10/ProviderResources.html
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What N742 meant

Remark N742 was a transition-era alert. When a claim was processed using ICD-9 diagnosis codes, the payer added it to remind the provider that ICD-10 was mandatory for health care providers, health plans, and clearinghouses, and pointed to CMS resources for help.

What replaced it

Nothing replaced it, because its purpose ended when the transition did. Diagnosis coding problems are now handled with ordinary codes: remark M76 for a missing or invalid diagnosis, CARC CO-146 when the diagnosis is invalid for the date of service, and CO-16 for general claim errors.

If you still see N742

It only appears on claims from the transition period. If you are reprocessing or appealing a claim from that time, use the code set that was valid on the date of service. For all current claims, report ICD-10 codes coded to the required specificity.

  • M76 (Missing/incomplete/invalid diagnosis or condition.): Missing, incomplete, or invalid diagnosis or condition.
  • CO-146 (Diagnosis was invalid for the date(s) of service reported.): Diagnosis was invalid for the dates of service reported.
  • CO-16 (Claim/service lacks information or has submission/billing error(s).): Claim lacks information or has billing errors.

N742 FAQ

Was N742 a denial?

No. It was an alert. The claim was processed; the remark warned that ICD-9 codes would not be accepted after the transition.

What happens if an ICD-9 code is billed today?

It is invalid for current dates of service. Payers reject or deny such claims, typically with codes like CARC 146 or CARC 16 and remark M76.