CO-253 — Sequestration reduction
Claim-adjustment reason code 253 · typically reported as CO-253 or OA-253
What it means
The 2% federal sequestration cut applied to Medicare payments. Informational — paid amount is reduced, nothing is owed by the patient.
Why DME claims hit it
- Appears on every Medicare FFS payment while sequestration is in effect
How to fix it
- Post as a payer adjustment (not patient responsibility); make sure expected-pay calculations include it so reconciliation doesn’t flag false underpayments
Appeal posture
Not appealable — statutory.
Related denial codes
Looking up an item instead? Browse the HCPCS code library for fee schedule amounts and PA flags.
Turn denials into recovered revenue
MyMedi-AI maps every remit code to its fix, tracks appeal deadlines, and drafts appeal letters with the right documentation checklist.
Start free trial Run a CMS-0057-F readiness check