How To Fix Remark Code M860 (RARC) | Common Reasons, Next Steps & How To Avoid It
Remark Code N660 means that sales tax has been included in the reimbursement. This code is used to indicate that the amount being reimbursed includes sales tax, which may affect the overall payment amount. Understanding this code is important for medical coders and billing professionals to ensure accurate reimbursement and billing processes.
1. Description
Remark Code N660 indicates that sales tax has been included in the reimbursement. The official description states: ‘Sales tax has been included in the reimbursement.’ This means that the amount being reimbursed includes the sales tax component, which may impact the total payment received by the healthcare provider.
2. Common Reasons
- Inclusion of sales tax in the reimbursement: The most common reason for Remark Code N660 is that the reimbursement amount includes the sales tax component. This may occur when the healthcare provider is located in a jurisdiction where sales tax is applicable to medical services.
3. Next Steps
- Verify the inclusion of sales tax in the reimbursement: It is important to review the reimbursement details and confirm whether sales tax has been included in the payment.
- Adjust billing and accounting processes accordingly: If sales tax has been included in the reimbursement, healthcare providers may need to make adjustments to their billing and accounting processes to accurately reflect the inclusion of sales tax.
4. How To Avoid It
- Understand local sales tax regulations: Familiarize yourself with the sales tax regulations in the jurisdiction where the healthcare provider is located. This will help in determining whether sales tax should be included in the reimbursement.
- Ensure accurate documentation and coding: Proper documentation and coding of services rendered can help in accurately calculating the reimbursement amount, including any applicable sales tax.
- Review reimbursement details: Thoroughly review the reimbursement details to identify any inclusion of sales tax and ensure it is accounted for correctly.
5. Example Cases
- Case 1: A healthcare provider receives a reimbursement for a medical service, and Remark Code N660 is included in the remittance advice. Upon review, it is discovered that the reimbursement amount includes sales tax, requiring adjustments to the accounting records.
- Case 2: A billing professional submits a claim for reimbursement, and Remark Code N660 is added to the explanation of benefits. The inclusion of sales tax in the reimbursement prompts the billing professional to review the billing process and ensure accurate accounting.
Source: Remittance Advice Remark Codes
