N432 remark code

Remittance advice remark code N432. Remark codes add detail to the reason code on the same claim line.

Recovery audit adjustment

Unofficial reference. This is our own plain-English explanation, not the official code text. Payer rules differ. Verify with the payer and the official X12 code list. AlphaPrefix is not affiliated with X12, CMS or any payer. Data last updated Nov 11, 2026.

What N432 means

An alert that this claim was adjusted because of a recovery audit, usually leading to a recoupment.

N432 is an informational alert telling you the change came from a recovery audit contractor review, not routine processing. Recovery audits look back at paid claims for overpayments, so this remark usually appears on an adjustment that takes money back.

The reason code on the adjustment shows what the auditor found. Audit results normally have their own appeal path and deadlines.

Common causes

• A post-payment audit found the service was coded or billed incorrectly.
• Records requested during an audit did not support the level or necessity of care.
• The auditor found a duplicate payment or a payment above the correct amount.

What to do next

1. Match the adjustment to the audit letter or demand notice for the claim.
2. Review the auditor's findings against the medical record.
3. File an appeal within the audit appeal deadline if you disagree.
4. Post the recoupment carefully so the original payment and the take-back both show on the account.

Related codes

• N10 (remark code) Adjusted after clinical or peer review
• N729 (remark code) Medical record missing
• N706 (remark code) Documentation missing