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N840 Remark Code: Workers' Comp Claim in Another State

N840 means the injured worker's compensation claim is filed with a different state than the one the bill was sent under. The claim needs to be billed and priced under the rules of the state where the workers' compensation claim is filed.

Quick facts

Code
N840 (RARC N840)
Status
Active In use since March 1, 2021.
Code set
Remittance Advice Remark Codes (RARC)
Group codes
  • CO (Contractual Obligation): The bill was denied or adjusted for a jurisdiction mismatch. It is not billable to the injured worker.
Official description
Worker's compensation claim filed with a different state.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What N840 means

Workers’ compensation is regulated state by state, and each state has its own fee schedule, billing forms, and treatment rules. Which state governs a particular claim depends on facts such as where the injury occurred and where the worker is employed, and it isn’t always where the patient was treated.

N840 says the workers’ compensation claim for this patient sits in a different state from the one your bill was sent under. This is a property and casualty code; it doesn’t apply to group health billing. The carrier will expect the bill to follow the other state’s requirements.

Common causes

  • Injured worker treated across state lines, for example a traveling employee or a clinic near a state border.
  • Employer based in another state where the claim was filed.
  • Wrong claim number or carrier entered from an intake form.
  • Multiple claims for the same worker in different states, with the bill attached to the wrong one.

What to do

  1. Call the adjuster to confirm the claim number, the governing state, and where bills should be sent.
  2. Review that state’s requirements, including billing form, fee schedule, required attachments, and any provider registration.
  3. Rebill under the correct jurisdiction with the right claim number and documentation.
  4. Don’t bill the injured worker while the workers’ compensation claim is open, unless the governing state’s rules allow it.

How to prevent it

  • At intake, record the employer’s state, the injury state, and the carrier’s claim number.
  • Verify jurisdiction with the adjuster before the first visit.
  • Keep a quick reference of billing rules for the states your patients’ claims most often come from.

Codes that may appear with N840

  • CO-P13 (Payment reduced or denied based on workers' compensation jurisdictional regulations or payment policies, use only if no other code is applicable.): Payment reduced or denied under workers' compensation jurisdictional rules.
  • CO-109 (Claim/service not covered by this payer/contractor.): The claim isn't covered by this payer or contractor and must go to the correct one.
  • CO-P16 (Medical provider not authorized/certified to provide treatment to injured workers in this jurisdiction.): The provider isn't authorized to treat injured workers in that jurisdiction.
  • N625 (Missing/Incomplete/Invalid Workers' Compensation Claim Number.): The workers' compensation claim number is missing or invalid.
  • CO-P12 (Workers' compensation jurisdictional fee schedule adjustment.): A workers' compensation jurisdictional fee schedule adjustment.

N840 FAQ

How can a claim be in a different state from where I treated the patient?

The workers' compensation claim may be filed where the worker was hired, where the employer is based, or where the injury happened, depending on state law. The treating location doesn't decide it.

Which fee schedule applies?

Generally the fee schedule and rules of the state with jurisdiction over the claim, though rules vary. Ask the carrier which state's schedule it applies.

Do I need a different form or registration?

Possibly. Some states have their own billing forms, provider registration, or treating provider requirements. Check the jurisdiction's rules before rebilling.