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N883 Remark Code: Processed According to State Law

N883 is an informational alert that the payer processed the claim according to state law. The remark does not name the law, so you may need to ask the payer which statute it applied and how it affected payment or patient liability.

Quick facts

Code
N883 (RARC N883)
Status
Active In use since November 1, 2022.
Code set
Remittance Advice Remark Codes (RARC)
Group codes
  • CO (Contractual Obligation): An adjustment the state law requires the provider to absorb, such as a legislated rate reduction or a balance-billing limit.
  • PR (Patient Responsibility): Patient responsibility as limited or defined by the state law.
Official description
Alert: Processed according to state law
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What N883 means

N883 is one of the broadest remark codes on a remittance. It says only that a state law shaped how the claim was handled. The law could concern surprise billing, prompt payment and interest, mandated benefits, workers’ compensation fee schedules, or patient cost-sharing caps.

Read it together with the adjustment reason code on the line. The CARC tells you what happened to the money; N883 tells you the legal basis was a state requirement rather than plan terms or your contract.

What to do

  1. Find the statute. Check the remittance for policy references or a companion remark. If none, ask the payer’s provider services line which law it applied.
  2. Review patient billing. Hold patient statements until you know whether the law limits what the patient owes.
  3. Check the payment against the law’s formula where one exists.
  4. Use the state’s process to dispute the result if you believe the law was applied incorrectly. Payer appeals and state regulator complaints are common routes.

Codes that may appear with N883

  • CO-223 (Adjustment code for mandated federal, state or local law/regulation that is not already covered by another code and is mandated before a new code…): An adjustment mandated by federal, state, or local law that no other code covers.
  • CO-45 (Charge exceeds fee schedule/maximum allowable or contracted/legislated fee arrangement.): A reduction to a legislated fee arrangement, where the state sets the rate.
  • N871 (Alert: This initial payment was calculated based on a specified state law, in accordance with the No Surprises Act.): Specifically names a state law used for a No Surprises Act initial payment.
  • N858 (Alert: State regulations relating to an Out of Network Medical Emergency Care Act were applied to the processing of this claim.): Points to state out-of-network emergency care regulations.
  • N246 (State regulated patient payment limitations apply to this service.): State-regulated patient payment limitations apply to the service.
  • N914 (This claim was priced and processed in accordance with California AB-72 Health care coverage.): Names a specific state law, California AB-72, as the pricing basis.

N883 FAQ

Which state law does N883 refer to?

The code itself does not say. Look for other remarks or policy references on the remittance, and call the payer if nothing identifies it.

Is N883 a denial?

No. It explains the basis for processing. Any denial would be carried by the claim adjustment reason code on the same line.

Could N883 affect whether I can bill the patient?

Yes. Many state laws limit balance billing or cap patient cost sharing, so check before sending a patient statement.