Remittance advice remark code

Remark code N425 meaning

RARC N425: The service is excluded by law and not covered.

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Remark code
RARC N425
Short name
Excluded by law
Plain meaning
The service is excluded by law and not covered.
Kind
Adds detail to the reason code on the same line.

Plain-English summary written by Rivvi. X12 owns the RARC list and its exact wording, which is not reproduced here. Read it on the X12 RARC list (list dated July 1, 2026, checked October 23, 2026). This page does not decide how a claim is paid.

What to check before resubmitting

  1. For Medicare, items such as routine dental care or hearing aids are excluded by statute.
  2. The patient may owe it. An ABN is not required for excluded items, but one can be given as a courtesy.

Reason codes it often comes with

Related remark codes

Related pages

Questions

What does remark code N425 mean?

The service is excluded by law and not covered. This is Rivvi's plain-English summary of RARC N425. X12's exact wording is on x12.org.

What should I do about N425?

For Medicare, items such as routine dental care or hearing aids are excluded by statute. The patient may owe it. An ABN is not required for excluded items, but one can be given as a courtesy.

Is N425 a denial?

A remark code adds detail to the reason code on the same line. The reason code (CARC) and its group code decide what was denied or adjusted. It is often paired with reason codes 96, 204.

What is the difference between a RARC and a CARC?

A remittance advice remark code (RARC) adds detail to a claim adjustment reason code (CARC). The CARC says why the line was adjusted. The RARC often says what to fix.

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