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N747 Remark Code: Misdirected, Bill Plan Where Patient Lives

N747 means the claim was sent to the wrong payer or plan. It should be submitted to the payer or plan responsible for the area where the patient lives, not the one that received it.

Quick facts

Code
N747 (RARC N747)
Status
Active In use since March 1, 2015.
Code set
Remittance Advice Remark Codes (RARC)
Group codes
  • CO (Contractual Obligation): The receiving payer will not process the claim. The provider must resubmit to the correct plan; the patient should not be billed.
Official description
This is a misdirected claim/service. Submit the claim to the payer/plan where the patient resides.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What N747 means

Some payer arrangements divide responsibility geographically, based on where the patient lives rather than where the service happened. When a claim lands with a plan or contractor that does not cover the patient’s home area, that payer can return it with N747 and CARC 109.

A familiar example is Medicare durable medical equipment billing, where the responsible contractor is determined by the beneficiary’s permanent residence. Other payers with regional plans or home-plan arrangements use similar logic.

Common causes

  • The patient moved, and the claim used an old address or routing.
  • A supplier billed the contractor for its own location instead of the patient’s home jurisdiction.
  • A traveling patient received care out of area, and the claim was sent to the local plan instead of the patient’s home plan.
  • The patient’s address in your system is a temporary or seasonal one.

How to fix it

  1. Confirm the patient’s permanent address and current coverage.
  2. Identify the payer, plan, or contractor responsible for that area.
  3. Submit the claim to the correct payer as a new claim, not a corrected claim to the wrong one.
  4. Keep the N747 remittance in case you need to show the original submission date.
  5. Update the patient’s address and payer routing in your system.

How to prevent it

Verify the patient’s address at each visit and use electronic eligibility responses to confirm routing. For suppliers serving patients from several regions, build routing rules based on the patient’s residence. See claim rejection vs. denial for handling front-end routing errors.

Codes that may appear with N747

  • CO-109 (Claim/service not covered by this payer/contractor.): The claim is not covered by this payer or contractor and must go to the correct one.
  • CO-B11 (The claim/service has been transferred to the proper payer/processor for processing.): Used when the claim was transferred to the proper payer rather than just returned.
  • N105 (This is a misdirected claim/service for an RRB beneficiary.): A misdirected claim for a Railroad Retirement Board beneficiary.
  • N127 (This is a misdirected claim/service for a United Mine Workers of America (UMWA) beneficiary.): A misdirected claim for a United Mine Workers of America beneficiary.
  • CO-31 (Patient cannot be identified as our insured.): The patient cannot be identified as an insured at all, a different eligibility problem.

N747 FAQ

Why does the patient's residence decide which plan pays?

Some programs assign jurisdiction by where the beneficiary lives. For example, Medicare's DME contractors are assigned by the beneficiary's permanent residence, and some plan networks route claims to a home plan.

Does the new submission count as timely?

Filing limits are set by the correct payer. Keep the misdirected remittance, since some payers consider it when reviewing a late submission, but do not rely on that.

What if I don't know which plan covers the patient's area?

Ask the patient for their current address and card, verify eligibility electronically, or call the payer that sent N747 for routing guidance.