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N776 Remark Code: Not a Covered Telehealth Service

N776 means the service billed is not a covered telehealth service. The payer does not pay for it when delivered remotely, or the claim's place of service or modifiers marked it as telehealth when the payer's rules do not allow that.

Code: N776 (RARC N776)
Status: Active In use since November 1, 2016.
Code set: Remittance Advice Remark Codes (RARC)
Group codes: CO (Contractual Obligation): The provider absorbs the denial, typically because the payer's telehealth rules were not met.
PR (Patient Responsibility): The plan assigns the cost to the patient because the benefit excludes it by telehealth. Check plan terms and any advance notice requirements before billing.
Official description: This service is not a covered Telehealth service.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified: September 24, 2026 against the official X12 list.

What N776 means

Telehealth coverage is defined service by service. Payers keep lists of what may be delivered remotely and set conditions such as video versus audio-only, where the patient is located, and which provider types may bill. N776 means this service, as billed, fell outside those rules.

The remark usually pairs with CARC 5, CARC 96, or CARC 204. The payer recognized the claim as telehealth from the place of service code in box 24B or from a telehealth modifier.

Common causes

The service is not on the payer’s telehealth-eligible list for the date of service.
An audio-only visit was billed for a service that requires video.
The provider type is not allowed to bill that service by telehealth under the plan.
A telehealth flexibility that applied earlier had expired by the date of service.
The visit was in person, but the claim carried a telehealth place of service or modifier by mistake.

How to fix it

Confirm how the service was actually delivered, from the documentation.
If it was in person, correct the place of service and remove telehealth modifiers, then submit a corrected claim with resubmission code 7.
If it was telehealth, compare the service with the payer’s telehealth policy for that date. If it qualified, request reconsideration and cite the policy.
If it did not qualify, check whether the patient can be billed under the plan terms and any required notice.

How to prevent it

Keep a current telehealth coverage matrix by payer, and check it when scheduling virtual visits. Claim validation before submission can flag services billed with a telehealth place of service that a payer does not cover.

Codes that may appear with N776

CO-5 (The procedure code/type of bill is inconsistent with the place of service.): The procedure code is inconsistent with the place of service, such as a telehealth POS.
CO-96 (Non-covered charge(s).): A non-covered charge because of how it was delivered.
PR-204 (This service/equipment/drug is not covered under the patient's current benefit plan): The service is not covered under the patient's current benefit plan by telehealth.

N428 (Not covered when performed in this place of service.): Not covered when performed in this place of service, a broader place-of-service rule.
CO-58 (Treatment was deemed by the payer to have been rendered in an inappropriate or invalid place of service.): The payer considers the place of service inappropriate or invalid.
N151 (Telephone contact services will not be paid until the face-to-face contact requirement has been met.): Telephone contact services are not paid until a face-to-face requirement is met.

N776 FAQ

Why is a service covered in person but not by telehealth?

Payers maintain lists of services they allow by telehealth, often with rules on audio-only versus video, originating site, and provider type. Services outside those rules are denied.

Could a coding error cause N776?

Yes. If the service was actually in person but billed with a telehealth place of service or modifier, correct the claim and resubmit.

Do telehealth rules change often?

Yes. Medicare and many commercial and Medicaid plans have changed telehealth coverage several times in recent years. Check the rules for the specific date of service.

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