The Centers for Medicare & Medicaid Services (CMS) has issued a new claim adjustment reason code (CARC) that is to be used to report the 2 percent payment adjustments as required under sequestration. The new code, CARC 253 (Sequestration – Reduction in Federal Spending), is effective June 3, and the implementation date is January 6, 2014.
This replaces the prior code that was used to explain the adjustment in payment, CARC 223 (Adjustment code for mandated federal, state, or local law/regulation that is not already covered by another code and is mandated before a new code can be created). Two percent payment adjustments as required under sequestration went into effect April 1.
