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N775 Remark Code: Payment Cut for X-Ray on Film

N775 means payment was adjusted because the x-ray was taken using film. Medicare, and some payers that follow its methods, reduce payment for imaging captured on film rather than digital technology, identified on the claim with a specific modifier.

Quick facts

Code
N775 (RARC N775)
Status
Active In use since November 1, 2016.
Code set
Remittance Advice Remark Codes (RARC)
Group codes
  • CO (Contractual Obligation): The reduction is a required payment adjustment. It is not billable to the patient.
Official description
Payment adjusted based on x-ray radiograph on film.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What N775 means

Federal law directed Medicare to reduce payment for x-rays taken on film, encouraging a move to digital imaging. Providers report film-based imaging with modifier FX, and the technical payment for those lines is reduced. N775 is the remark explaining that reduction.

Medicare pairs it with CARC 237 (legislated/regulatory penalty); other payers may use a different reason code, such as CARC 45. It is an expected adjustment when film is used, and a sign of a billing error when it is not.

When to look closer

  • Your imaging equipment is digital, yet N775 reductions appear.
  • The modifier is applied to every x-ray from a location that has mixed equipment.
  • A commercial payer applies a film reduction you did not expect under your contract.

What to do

  1. Confirm the equipment used for the imaging service.
  2. If film was used, the reduction is expected; post it as a regulatory adjustment.
  3. If the image was digital, remove modifier FX and submit a corrected claim with resubmission code 7.
  4. Fix the charge master or billing rule that added the modifier.

How to prevent it

Link imaging modifiers to the actual equipment and location, and update rules when equipment is replaced. Periodic review of imaging adjustments in an ERA analysis shows whether film-based reductions are still appearing after an upgrade.

Codes that may appear with N775

  • CO-45 (Charge exceeds fee schedule/maximum allowable or contracted/legislated fee arrangement.): The allowed amount was reduced because of the film-based technology.
  • CO-237 (Legislated/Regulatory Penalty.): A legislated or regulatory payment reduction.
  • N794 (Payment adjusted based on type of technology used.): Payment adjusted based on the type of technology used, such as computed radiography.
  • N759 (Payment adjusted based on the National Electrical Manufacturers Association (NEMA)): A similar equipment-based reduction for CT scanners that do not meet a dose standard.
  • N40 (Missing radiology film(s)/image(s).): Radiology films or images are missing, a documentation issue rather than a payment reduction.

N775 FAQ

How does the payer know the x-ray was on film?

Medicare requires modifier FX on imaging services taken using film. The reduction applies to lines billed with that modifier.

Our x-rays are digital. Why did we get N775?

The FX modifier may have been added in error, for example through a charge master default. Remove it and send a corrected claim.

Does N775 apply to the professional interpretation?

Film-based reductions generally apply to the technical component of the imaging service. Review each line to see where the adjustment was applied.