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N904 Remark Code: Transportation Vendor Responsible

N904 means the payer is not responsible for this transportation claim because a transportation vendor is. Many Medicaid programs and health plans contract with a transportation broker or vendor that manages and pays for non-emergency rides, so the claim must go to that vendor.

Quick facts

Code
N904 (RARC N904)
Status
Active In use since July 1, 2024.
Code set
Remittance Advice Remark Codes (RARC)
Group codes
  • CO (Contractual Obligation): The denied amount on this payer's remittance. It should be billed to the responsible vendor, not the patient.
Official description
The transportation vendor is responsible for this claim.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What N904 means

Transportation benefits are often carved out of a health plan and handed to a specialized vendor. The vendor takes trip requests, assigns transportation providers, authorizes rides, and pays for them. When a transportation claim goes to the health plan or Medicaid agency instead, it comes back with N904.

This is a wrong-payer denial, not a coverage denial. The ride may be fully payable, just not by the entity that received the claim.

Common causes

  • A non-emergency trip was billed to the plan rather than to its transportation broker.
  • The transportation provider is new to the market and unaware of the carve-out.
  • The member’s plan changed and a different vendor now manages rides.
  • The ride was not arranged through the vendor.

How to fix it

  1. Identify the responsible vendor from the payer or the member’s plan materials.
  2. Confirm the trip was authorized by the vendor. If it was not, payment may not be possible.
  3. Submit the claim to the vendor using its billing format and deadlines.
  4. Close out the original claim with the plan to avoid duplicate follow-up.

How to prevent it

Check each member’s plan and transportation vendor at scheduling, and route all trips for that plan through the vendor’s authorization process.

Codes that may appear with N904

  • CO-109 (Claim/service not covered by this payer/contractor.): Claim not covered by this payer; send it to the correct payer or contractor.
  • OA-24 (Charges are covered under a capitation agreement/managed care plan.): Charges are covered under a capitation or managed care arrangement, which may apply when a vendor holds the transportation benefit.
  • N803 (Submission of the claim for the service rendered is the responsibility of the Contracted Medical Group or Hospital.): Another delegated-responsibility remark: a contracted medical group or hospital must submit the claim.
  • N538 (A facility is responsible for payment to outside providers who furnish these services/supplies/drugs to its patients/residents.): A facility is responsible for paying outside providers who serve its residents.
  • N157 (Transportation to/from this destination is not covered.): Transportation to or from this destination is not covered.

N904 FAQ

What is a transportation vendor or broker?

It is a company that a Medicaid agency or health plan hires to schedule, authorize, and pay for non-emergency medical transportation. Transportation providers are paid by the vendor, not by the plan directly.

Does N904 apply to emergency ambulance?

Usually emergency ambulance is billed to the health plan. N904 more typically affects non-emergency transportation, but program rules differ, so confirm with the payer.

What if I have no contract with the vendor?

Contact the vendor about enrollment and billing. Payment usually requires that the trip was scheduled and authorized through the vendor.