Consumer Spending Account Payment (FSA/HSA/HRA)

What it means

This code isn't a denial — it's an informational note showing that part (or all) of the payment applied to this claim came from a patient's consumer spending account, such as a Flexible Spending Account (FSA), Health Savings Account (HSA), or Health Reimbursement Arrangement (HRA). It appears on the remittance advice to explain where a specific amount of money originated, typically alongside other adjustment or payment codes.

Common causes

The payer processed a portion of the patient's responsibility (deductible, copay, or coinsurance) through an integrated FSA/HSA/HRA debit arrangement.
The patient's health plan is linked to a consumer-directed account that automatically applies funds to cover out-of-pocket costs.
The claim includes a combination of insurance payment and account-based payment, and this code labels the account-based portion.
An employer-sponsored HRA is set up to auto-reimburse certain eligible expenses before the remittance is generated.

How to fix it

Confirm this code is informational and not an actual denial by checking the accompanying payment amount and any paired CARC/RARC codes.
Reconcile the posted amount with your practice management system to ensure the FSA/HSA/HRA payment is applied to the correct patient responsibility bucket (copay, coinsurance, or deductible).
Verify there is no duplicate billing to the patient for the amount already covered by the consumer spending account.
If the remaining balance after this adjustment seems incorrect, review the full remittance to see if additional CARC codes explain any unpaid amounts.
Update your billing system notes to reflect that part of the payment came from a non-traditional funding source, which can help with later patient statements or audits.

Appeal / resubmit

Because code 187 is typically informational rather than a denial, there is usually nothing to appeal. If you believe the FSA/HSA/HRA amount was misapplied or doesn't match the patient's actual account activity, contact the payer or plan administrator to request a corrected remittance, and keep documentation of the patient's account-based payment for your records.

Related codes

Frequently asked

Is code 187 a denial that reduces what I get paid?

No — it's an informational code that identifies the source of a payment (an FSA, HSA, or HRA) rather than denying or reducing reimbursement.

Do I need to bill the patient separately if I see code 187?

Generally no, since the amount shown with this code has already been paid from the patient's consumer spending account. Double-check your ledger to avoid billing the patient again for that same portion.

What should I do if the FSA/HSA/HRA amount looks wrong?

Reach out to the payer or the account administrator to verify the payment amount and request a corrected remittance if there's a discrepancy.

More free billing tools: all denial codes · denial lookup · Medicare fee calculator

This content is informational only and does not constitute billing or legal advice. Always verify current payer policies and consult a qualified billing or compliance professional for specific guidance.