Remark code N660 indicates that the reimbursement amount already includes sales tax.
Remark code N660 indicates that sales tax has been included in the reimbursement amount provided.
Common causes of code N660 are incorrect billing practices where sales tax is erroneously added to the claim amount, misunderstanding of payer policies regarding sales tax applicability, or the use of outdated billing software that automatically includes sales tax in the reimbursement calculations.
Ways to mitigate code N660 include implementing a robust billing system that automatically separates sales tax from the claimable service or product fees. Ensure that your billing team is trained to identify and exclude sales tax from the reimbursement requests. Regularly audit your billing processes to catch and correct any instances where sales tax is mistakenly included. Utilize billing software that is updated with the latest tax regulations to prevent inadvertent inclusion of sales tax in future claims. Establish a clear communication channel with your finance department to ensure that all billing information accurately reflects the non-taxable nature of healthcare reimbursements.
The steps to address code N660 involve a detailed review and potential adjustment of the billing process to ensure compliance with tax regulations and payer policies. Initially, it's crucial to verify the accuracy of the claim, focusing on the inclusion of sales tax in the reimbursement amount. If the sales tax was correctly included, documentation supporting the tax charges, such as invoices or receipts, should be compiled and retained for any future audits or inquiries.
Next, engage with the finance or accounting department to understand the specific tax laws applicable to healthcare services and products in your jurisdiction, as these can vary significantly. This knowledge will help in determining whether the sales tax was appropriately applied and if it aligns with the payer's policies.
If an error was made in the claim submission, prepare to submit a corrected claim excluding the sales tax from the reimbursement request, if that aligns with the payer's guidelines. Ensure that the billing team is informed about this correction to prevent similar issues in future submissions.
Conversely, if the inclusion of sales tax is justified and aligns with local tax laws and payer policies, prepare a detailed explanation and any supporting documentation to submit to the payer. This may involve a written appeal or a request for reconsideration, clearly outlining the rationale for the inclusion of sales tax in the reimbursement.
Finally, use this experience as a learning opportunity to review and possibly update your billing and coding practices. Consider implementing additional training for your billing staff to ensure they are aware of how to handle sales tax in healthcare billing, including when it is applicable and how to accurately report it on claims. This proactive approach can help minimize similar issues in the future and improve the overall efficiency of your revenue cycle management processes.
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