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. 



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