Skip to main content

N875 Remark Code: Final Payment Chosen by Federal IDR

N875 is an alert that the final payment matches the out-of-network rate selected by a certified federal independent dispute resolution (IDR) entity under the No Surprises Act. It follows an IDR decision on the claim.

Quick facts

Code
N875 (RARC N875)
Status
Active In use since March 1, 2022.
Code set
Remittance Advice Remark Codes (RARC)
Group codes
  • CO (Contractual Obligation): Your charge above the rate the IDR entity selected. The patient cannot be billed for it.
  • PR (Patient Responsibility): The patient's cost sharing, which is set by the recognized amount and is not changed by the IDR outcome.
Official description
Alert: This final payment equals the amount selected as the out-of-network rate by a Federal Independent Dispute Resolution Entity, in accordance with the No Surprises Act.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What N875 means

When open negotiation fails, either party can take a No Surprises Act payment dispute to the federal independent dispute resolution process. A certified IDR entity reviews both offers and picks one. The plan then pays based on the chosen offer.

N875 tells you the payment on this remittance reflects that determination. The final out-of-network rate equals the offer the IDR entity selected, whether it was yours or the plan’s.

What to do

  1. Compare the payment with the written determination. The selected offer is the total out-of-network rate. What the plan owes you is that rate, minus its earlier payment and the patient’s cost sharing.
  2. Escalate a mismatch to the plan right away, attaching the determination notice.
  3. Close the claim in your dispute log and adjust the CO balance once it reconciles.
  4. Mind the cooling-off rule. After a determination, the party that started the dispute generally cannot bring a new one against the same party for the same item or service for a period of time. Factor that into your strategy for similar claims.
  5. Leave the patient balance alone. Only the PR amount is collectible.

Codes that may appear with N875

  • CO-45 (Charge exceeds fee schedule/maximum allowable or contracted/legislated fee arrangement.): The reduction from your charge to the IDR-selected rate.
  • N874 (Alert: This final payment was determined through open negotiation, in accordance with the No Surprises Act.): The final rate came from open negotiation instead of IDR.
  • N877 (Alert: This initial payment is provided in accordance with the No Surprises Act.): The initial payment at the start of the process.
  • N859 (Alert: The Federal No Surprise Billing Act was applied to the processing of this claim.): A general alert that the federal No Surprises law was applied and payment may be disputed.

N875 FAQ

How does federal IDR pick the amount?

It is a baseball-style process. The provider and plan each submit an offer, and the certified IDR entity selects one of the two offers after weighing the factors the law allows.

Can the IDR decision be appealed?

IDR determinations are generally binding. Judicial review is available only in narrow circumstances, such as fraud.

What if the payment does not match the decision?

Contact the plan with a copy of the IDR determination. Payment of the determined amount is due within a set time after the decision.