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N771 Remark Code: Limiting Charge Alert

N771 is an alert that, under federal law, you cannot charge more than the limiting charge amount. It applies mainly to Medicare non-participating providers who do not accept assignment and bill the patient directly.

Quick facts

Code
N771 (RARC N771)
Status
Active In use since July 1, 2016.
Code set
Remittance Advice Remark Codes (RARC)
Group codes
  • PR (Patient Responsibility): The patient's responsibility is capped by the limiting charge. Amounts above that cap cannot be collected.
  • CO (Contractual Obligation): Any charge above the limiting charge is not collectible from anyone and should be written off.
Official description
Alert: Under Federal law you cannot charge more than the limiting charge amount.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What N771 means

Medicare lets non-participating providers choose, claim by claim, whether to accept assignment. When they do not accept assignment, they can bill the patient more than the Medicare allowed amount, but only up to a federal cap called the limiting charge. N771 is a reminder of that cap on your remittance.

It does not change the payment on the claim. Some states set their own additional limits, so check local rules as well.

What to do

  1. If you participate with Medicare or accepted assignment on this claim, no action is needed.
  2. If you did not accept assignment, confirm your charge for each service is at or below the limiting charge for that service and locality.
  3. If the patient paid more than the limiting charge, refund the excess.
  4. Review your fee schedule for non-assigned claims so charges never exceed the cap.

Codes that may appear with N771

  • CO-45 (Charge exceeds fee schedule/maximum allowable or contracted/legislated fee arrangement.): The charge exceeded the fee schedule or legislated fee arrangement, including the limiting charge.
  • PR-2 (Coinsurance Amount): Coinsurance the patient owes, which counts toward the capped total.
  • MA28 (Alert: Receipt of this notice by a physician or supplier who did not accept assignment is for information only and does not make the physician or…): An alert to providers who did not accept assignment that the notice is for information only.
  • MA13 (Alert: You may be subject to penalties if you bill the patient for amounts not reported with the PR (patient responsibility) group code.): Warns of penalties for billing the patient for amounts not reported under PR.
  • MA56 (Our records show you have opted out of Medicare, agreeing with the patient not to bill Medicare for services/tests/supplies furnished.): Concerns providers who have opted out of Medicare, a different arrangement from non-participation.

N771 FAQ

What is the limiting charge?

For Medicare Part B, it is the maximum a non-participating provider who does not accept assignment may charge for a covered service, generally set at a percentage above the non-participating fee schedule amount.

Does N771 apply to participating providers?

Not in practice. Participating providers accept assignment and the Medicare allowed amount, so the limiting charge does not come into play.

What if I already collected more than the limiting charge?

Refund the excess to the patient. Charging above the limiting charge can lead to penalties.