Sequestration, Reduction in Federal Spending.

ERAs Have A New CARC for Sequestration (Claim Adjustment Reason Code). Sequestration took effect on April 1, 2013 and will remain in effect for 9 years through 2021 unless legislation is enacted to change it. The 2% payment reduction is applied to:

  • Episodes with end dates of April 1, 2013 and later for Home Health providers.
  • The claim “through date,” with calendar month billing, services beginning April 1, 2013 for Hospice providers.

CMS recently announced it is replacing the previously assigned 223 claim adjustment reason code (CARC) with 253 – “Sequestration, Reduction in Federal Spending.”  The old code of 223 was for “Adjustment codes for mandated Federal, State or Local law/regulations that are not already covered by another code and are mandated before a new code can be created.”

To see the official change request click here.
To see the full Medlearn Matters article click here.