How To Fix Remark Code M1022 (RARC) | Common Reasons, Next Steps & How To Avoid It

Remark Code N827 means that there is missing, incomplete, or invalid Federal Information Processing Standard (FIPS) code. This code is often used by healthcare providers and insurance companies to indicate the reason for denial or adjustment of a claim due to issues with the FIPS code.

1. Description

Remark Code N827 indicates that there is missing, incomplete, or invalid Federal Information Processing Standard (FIPS) code. The official description states: ‘Missing/Incomplete/Invalid Federal Information Processing Standard (FIPS) Code.’ The FIPS code is a standardized coding system used to identify geographic locations in the United States. It is crucial for accurate billing and claim processing, highlighting the importance of ensuring the FIPS code is complete and valid.

2. Common Reasons

1. Missing FIPS code: The FIPS code may be missing from the claim altogether, leading to denial or adjustment.
2. Incomplete FIPS code: The FIPS code provided may be incomplete, with missing digits or incorrect formatting.
3. Invalid FIPS code: The FIPS code provided may not correspond to a valid geographic location, resulting in claim issues.

3. Next Steps

1. Verify the FIPS code: Double-check the FIPS code provided on the claim to ensure it is accurate and complete.
2. Obtain the correct FIPS code: If the FIPS code is missing or incomplete, consult reliable sources or contact the appropriate authorities to obtain the correct code.
3. Update the claim with the correct FIPS code: Once the correct FIPS code is obtained, update the claim with the accurate information to avoid further issues.

4. How To Avoid It

1. Ensure accurate FIPS code entry: Pay close attention when entering the FIPS code to avoid typographical errors or missing digits.
2. Use reliable sources for FIPS code lookup: Utilize reputable sources or databases to verify the correct FIPS code for a specific geographic location.
3. Regularly update FIPS code information: Stay informed about any changes or updates to FIPS codes to ensure accurate billing and claim processing.

5. Example Cases

1. Case 1: A claim is denied due to a missing FIPS code, highlighting the importance of providing complete information for accurate processing.
2. Case 2: A claim adjustment occurs because an invalid FIPS code was provided, emphasizing the need for accurate and valid coding.

Source: Remittance Advice Remark Codes