Payer Rejection: Missing Federal Sequestration Adj

Payer Rejection: Missing Federal Sequestration Adj


Payer Rejection: Acknowledgement/Rejected for Missing Information. The Claim Encounter is missing Information specified in the Status details and has been rejected Status: Federal Sequestration Adjustment

Medicare will provide the needed adjudication information when they submit a crossover claim to the payer on your behalf. You are receiving this rejection because the claim is missing a Federal Sequestration Adjustment amount (CO253) from Medicare’s claim consideration (835). 

Note: Medicare applies a 2% sequestration reduction adjustment to all Claim benefit payments.

  • When electronically submitting a secondary (COB) claim on which Medicare has made a payment, the Federal sequestration adjustment amount must be populated from the Medicare remittance using remark/reason code 253, in addition to all other Medicare payment and adjustment amounts. 


    • Related Articles

    • Payer Rejection Articles

      Payer Rejections Payer Rejections Overview Acknowledgement/Receipt Payer Rejection: A6 -A1-;Acknowledgment/Receipt Adjudication Date Payer Rejected: INVALID ADJ PAYMENT DATE Claim Filing Indicator (CFI) Payer Rejection: INVALID FILING INDICATOR CODE ...
    • Sequestration CO253

      Sequestion CO253 Missing Sequestration Adjustment CO253. Acknowledgement/Rejected for Missing Information. The Claim/Encounter is missing information specified in the Status details and has been rejected Status: Federal sequestration adjustment ...
    • Payer Rejection: Purchase Service Missing 2420B

      PAYER REJECTED: Missing 2420B Loop; Requires Purchase Service Provider Name and NPI A6 -A3-; Rejected; Missing or invalid information. Usage- At least one other status code is required to identify the missing or invalid information.; -THE PROCEDURE ...
    • Rejection: Missing or Invalid Information

      Missing or Invalid Information Rejections Because these Rejection messages are from the Payer, Support may be are unable to discern the reason for a rejection. It is recommended that you reach out to the Payer for more information. Rejection for NDC ...
    • Rejections Examples

      Rejection: Invalid Subscriber ID Format for ___ Resolution: From the Patient Dashboard, verify Eligibility, view the Eligibility Report, view the Patient's Scanned Insurance Card, and/or call the Patient. Correct the Policy Number. On the Encounter ...