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N907 Remark Code: No MFP Refund, 340B Price Lower

N907 means no refund is being paid for this Medicare Drug Price Negotiation Program claim because it was identified as 340B-eligible and the 340B ceiling price is lower than the maximum fair price (MFP). It is used only for that program.

Quick facts

Code
N907 (RARC N907)
Status
Active In use since March 1, 2025.
Code set
Remittance Advice Remark Codes (RARC)
Group codes
  • CO (Contractual Obligation): Where a group code is reported, it describes the refund adjustment between the manufacturer and the dispensing entity. It is not an amount to collect from the Medicare patient.
Official description
No refund because this claim has been identified as 340B-eligible with a ceiling price lower than the maximum fair price.
X12 Remittance Advice Remark Codes, retrieved September 25, 2026
Last verified
against the official X12 list.

What N907 means

Under the Medicare Drug Price Negotiation Program, Medicare patients pay based on a negotiated maximum fair price (MFP) for selected Part D drugs. Pharmacies usually buy the drug at a higher list price, so the manufacturer owes them a refund, commonly calculated as the wholesale acquisition cost minus the MFP, times the quantity.

Some prescriptions are also eligible for 340B discounts, which have their own ceiling price. The law does not require a manufacturer to give both discounts on the same unit. N907 says the claim was identified as 340B-eligible and the 340B ceiling price was already lower than the MFP, so no MFP refund is owed.

What to do

  1. Confirm the 340B status of the prescription in your 340B split-billing or TPA records.
  2. Post the claim as no refund due if the 340B identification is correct.
  3. Dispute with the manufacturer if the claim was misidentified as 340B, using the program’s process and timelines.
  4. Reconcile regularly. Compare expected MFP refunds with actual refunds so you can spot patterns such as unexpected 340B flags.

Codes that may appear with N907

  • CO-307 (Medicare Maximum Fair Price Standard Default Refund Amount Adjustment.): The Medicare Maximum Fair Price Standard Default Refund Amount adjustment, which N907 explains was not paid.
  • N917 (Alternative refund amount has been calculated because the maximum fair price is below the 340B ceiling price.): A 340B case where the MFP is below the ceiling price, so an alternative refund was calculated.
  • N908 (No refund because this drug has been prospectively purchased at the maximum fair price.): No refund because the drug was bought at the MFP up front.
  • N910 (A refund cannot be provided for this claim at this time.): No refund for now; contact the manufacturer about eligibility.

N907 FAQ

Who sees N907?

Pharmacies and other dispensing entities that receive Maximum Fair Price refund information for selected Part D drugs. It is not used on ordinary medical claims.

Why is there no refund?

Federal law does not require manufacturers to provide both the MFP and the 340B price on the same unit. When the 340B ceiling price is the lower of the two, the 340B price is treated as the benefit.

What if the claim was not actually 340B?

Contact the manufacturer with evidence that the unit was not purchased or dispensed under 340B, following the program's dispute process.