Denial Code 253 (CO-253, PR-253) — Meaning & What to Do

Claim Adjustment Reason Code (CARC)

What denial code 253 means: A federal sequestration (across-the-board) reduction was applied.
What to do about denial code 253: A Medicare payment reduction — not a separate patient charge.

CO-253 vs PR-253 vs OA-253: what the prefix means

Code on your EOBWhat the prefix meansWho typically pays
CO-253Contractual obligation — the provider writes the amount offUsually not the patient
PR-253Patient responsibilityThe patient
OA-253Other adjustmentOften another payer or plan

The prefix tells you who is expected to absorb the amount; the number (253) tells you why.

Seeing denial code 253 on your EOB?
A denial code tells you what the payer reported, but it may not tell the whole story. Reviewing your EOB and bill together can help clarify what may need attention.

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Related codes

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Frequently asked questions about Denial code 253

What does denial code 253 mean on my EOB?

A federal sequestration (across-the-board) reduction was applied.

What should I do about denial code 253?

A Medicare payment reduction — not a separate patient charge.

Seeing this code on your own EOB?
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Last reviewed 2026-07-07 · MDBillCheck Editorial Team. Plain-English explanations are original wording; always verify the specific reason with your insurer.