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N842 Remark Code: Patient Cannot Be Billed

N842 is an alert that the patient cannot be billed for the charges it applies to. Whatever the payer didn't pay on those lines must be written off or pursued with the payer or another payer, not collected from the patient.

Quick facts

Code
N842 (RARC N842)
Status
Active In use since March 1, 2021.
Code set
Remittance Advice Remark Codes (RARC)
Group codes
  • CO (Contractual Obligation): The unpaid amount is provider liability. The alert confirms it can't be moved to the patient.
  • OA (Other Adjustment): Even under an other adjustment, the alert says the patient isn't responsible.
Official description
Alert: Patient cannot be billed for charges.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What N842 means

N842 is short and direct: the patient cannot be billed for these charges. The reason usually comes from the CARC it accompanies and from your contract, program rules, or law. Common examples include contractual adjustments, bundled services, and charges where the provider failed to meet a requirement.

It’s worth taking literally. When N842 is on a line, the patient statement for that line should show zero beyond any separately reported PR amount.

What to do

  1. Post the adjustment to the provider side, not the patient account.
  2. Block patient statements for the affected amount and refund anything already collected for it.
  3. Read the CARC to see whether the payment itself is correct. If not, dispute it with the payer or bill a subsequent payer if one applies.
  4. Look for patterns. Frequent N842 lines on one service can point to a contract or billing issue worth fixing. ERA Analyzer can group them for you.

Codes that may appear with N842

  • CO-45 (Charge exceeds fee schedule/maximum allowable or contracted/legislated fee arrangement.): The charge exceeded the allowed amount, and the difference can't be balance billed.
  • CO-97 (The benefit for this service is included in the payment/allowance for another service/procedure that has already been adjudicated.): The service was bundled into another payment, and the patient can't be charged for it separately.
  • N830 (Alert: The charge[s] for this service was processed in accordance with Federal/ State, Balance Billing/ No Surprise Billing regulations.): A detailed balance billing alert under federal or state surprise billing rules.
  • M27 (Alert: The patient has been relieved of liability of payment of these items and services under the limitation of liability provision of the law.): The patient has been relieved of liability under Medicare's limitation of liability provision.

N842 FAQ

Does N842 mean the claim was denied?

Not necessarily. It may appear on a paid or partly paid claim. It only tells you the patient can't be charged for the amounts it covers.

What if the patient signed a financial agreement?

A general financial agreement usually doesn't override payer rules or your contract. Check with the payer or your compliance team before billing the patient.

Can I still appeal the payment?

Yes. N842 limits who you can bill; it doesn't stop you from disputing the payer's decision.