CARC Code
253
Sequestration Federal Payment Reduction
A mandatory, automatic reduction in federal payment required by budget sequestration laws. This is a percentage cut applied to Medicare and other federal healthcare payments.
contractualHow to resolve this denial
Correct procedure code sequencing and resubmit
- 1
Review the claim for the correct sequencing of related procedure codes
- 2
Verify CPT code relationships (primary vs. add-on codes) per CPT guidelines
- 3
Ensure add-on codes are never billed without their primary/parent code
- 4
Reorder procedure codes in the correct sequence on the claim
- 5
Resubmit the corrected claim with proper code sequencing
▶✓ Pre-action checklist — verify before contacting the payer
Review the full remittance advice (ERA/EOB) for additional RARC codes that explain the denial.
Verify the claim was submitted with correct patient eligibility and benefit information.
Check if this denial applies to a specific line item or the entire claim.
▶More about CO-253 — stats, related codes, appeal template
90%
Recovery Rate
3-7 days
Avg. Resolution
Easy
Difficulty
Rare
Frequency
Payer-Specific Notes
How major payers handle CARC 253 by specialty.
Medicare
Add-on codes (+codes) must always accompany their parent code; standalone billing is invalid
UnitedHealthcare
Endoscopy family rules: bill the most extensive base procedure code; add-on codes follow
Common 835 Combinations
CARC 253 most often appears with these Group Code + RARC combinations on 835 remittances.
Appeal Letter Template
Generic appeal template for CARC 253 denials.
We are resubmitting claim [CLAIM_NUMBER] with corrected procedure code sequencing. The original claim inadvertently reversed the sequence of [CODE_1] and [CODE_2]. The corrected sequencing reflects [CODE_1] as the primary procedure with [CODE_2] as the add-on/secondary service per CPT guidelines.
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