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N874 Remark Code: Final Rate Agreed in Open Negotiation

N874 is an alert that the final out-of-network payment on this claim was the amount reached through open negotiation between the provider or facility and the plan, under the No Surprises Act.

Quick facts

Code
N874 (RARC N874)
Status
Active In use since March 1, 2022.
Code set
Remittance Advice Remark Codes (RARC)
Group codes
  • CO (Contractual Obligation): Your charge above the negotiated final rate. Not billable to the patient.
  • PR (Patient Responsibility): The patient's cost sharing, which stays based on the recognized amount and does not rise because of the negotiated rate.
Official description
Alert: This final payment was determined through open negotiation, in accordance with the No Surprises Act.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What N874 means

After a plan sends an initial payment or a notice of denial for a service protected by the No Surprises Act, the out-of-network provider can open negotiations over the rate. If both sides settle on a number, the plan pays the difference between what it already paid and the agreed amount.

N874 appears on that settlement payment. It confirms that the final out-of-network rate came from your negotiation rather than from a state law, an All-Payer Model Agreement, or an arbitrator.

What to do

  1. Pull your written agreement. Open negotiation outcomes should be documented, including the agreed total rate.
  2. Add up everything paid. The plan’s initial payment plus this final payment, together with the patient’s cost sharing, should reconcile to the agreed amount as your agreement defines it.
  3. Chase any shortfall with the plan’s No Surprises Act contact, citing the agreement.
  4. Close the dispute in your tracking log once the amounts match, and write off the CO balance.
  5. Do not rebill the patient for anything beyond the PR amount already on the remittance.

Codes that may appear with N874

  • CO-45 (Charge exceeds fee schedule/maximum allowable or contracted/legislated fee arrangement.): Reports your charge above the negotiated amount.
  • PR-2 / PR-3 (Coinsurance and co-payment amounts.): The patient's share, which the negotiation does not change.
  • N877 (Alert: This initial payment is provided in accordance with the No Surprises Act.): The initial payment that invites you to start open negotiation.
  • N875 (Alert: This final payment equals the amount selected as the out-of-network rate by a Federal Independent Dispute Resolution Entity, in accordance…): The final amount was chosen by a federal IDR entity because negotiation did not produce agreement.
  • N876 (Alert: This item or service is covered under the plan.): A notice of denial of payment that also opens the door to negotiation.

N874 FAQ

What is open negotiation?

It is a 30-business-day period under the No Surprises Act when a provider and plan try to agree on an out-of-network rate after the initial payment or notice of denial. If they cannot agree, either side may move to federal independent dispute resolution.

Why does the patient share not change?

Patient cost sharing is based on the recognized amount, not on whatever the provider and plan later agree. The negotiated rate affects only the plan's payment to you.

What if the payment differs from our agreement?

Contact the plan with your written agreement and ask it to correct the payment.