Electronic Remittance Advice (ERA)

An electronic remittance advice (ERA) is an electronic data interchange (EDI) version of a medical insurance payment explanation. It provides details about providers' claims payment, and if the claims are denied, it would then contain the required explanations.An electronic remittance advice (ERA) is an electronic data interchange (EDI) version of a medical insurance payment explanation. It provides details about providers' claims payment, and if the claims are denied, it would then contain the required explanations. The explanations include the denial codes and the descriptions, which present at the bottom of ERA. An electronic remittance advice, or ERA, is an explanation from a health plan to a provider about a claim payment. An ERA explains how a health plan has adjusted claim charges based on factors like: Contract agreements. Secondary payers.

Electronic remittance advice (ERA) is a digital version of the paper explanation of benefits (EOB) you may receive from payers via mail.An ERA provides details about the payment you receive from a payer for the corresponding claim(s). This may include information about your contracted rate with the payer if you're in-network or the amount paid if you're out-of-network; copay, coinsurance, deductibles; and any other payment adjustments such as interest, penalties, and balance forwarding. A payer may also communicate claim rejections and refunds through an ERA.

An electronic remittance advice, or ERA, is an explanation from a health plan to a provider about a claim payment. An ERA explains how a health plan has adjusted claim charges based on factors like:

Contract agreements
Secondary payers
Benefit coverage
Expected copay and co-insurance

The Electronic Remittance Advice (ERA) is the electronic version of the Standard Paper Remit (SPR), which serves as a notice of payment and adjustments sent to providers, billers and suppliers. It explains the reimbursement decisions of the payer.

EDI Support Services (EDISS) constantly strives to educate providers on the benefits of exchanging data electronically.

There are several benefits to choosing ERA

Quicker receipt of remittances – Receive your remittances the day the claim finalizes, rather than waiting until the mail arrives a week after the payment was made.
Streamlines the reconciliation process – Most billing software has the ability to auto post electronic remittances, allowing your staff to more accurately reconcile outstanding balances.
Increases productivity and efficiency – Staff are able to more quickly work their outstanding claims, as most billing software stores the electronic ERA data to show the progression of billed claims.
Reduces paper and printing costs – Switching to ERA saves the government money, which in the long run means less of your paycheck contribution to Medicare and/or Medicaid goes toward administrative costs.
Environmentally responsible – You can help your Contractor cut down on the amount of environmental resources used.
Faster processing of secondary claims – By getting your remittance earlier than a paper remittance, you are able to forward your information on to additional insurances quicker.
Lower storage and maintenance costs – Eliminates the need to utilize building space to keep future remittances on file for historic purposes.
Lower administrative costs – Reduces costs associated with staff time to review and file paper remittances.

Electronic remittance advice helps you save time by automatically posting insurance payments based on electronic reports delivered to your practice. You can receive electronic remittance advice (ERA) reports, receive a receipt of an electronic funds transfer (EFT), and use electronic remittance advice reports to automatically post insurance payments and reconcile balances. By receiving electronic payments and automating the payment posting process, you can get paid faster and save time.

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