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Joy Hicks

This Week's Q & A: What is an electronic remit?

By May 31, 2011

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Question: What is an electronic remit?

Answer: A Remittance Advice (RA) is a document supplied by the insurance payer that provides notice of and explanation reasons for payment, adjustment,denial and/or uncovered charges of a medical claim.

Usually accompanies Medicare and Medicaid payments. Often referred to as an explanation of payment by other insurance payers.

There are two types of RAs:

  1. Electronic Remittance Advice (ERA): an RA that is transmitted in an electronic format
  2. Standard Remittance Advice (SRA): an RA that is submitted in a paper format

Most insurance payers have implemented the use of the ERA. The benefits include the ability to post payment information automatically and quickly identify denials made during initial billing to make necessary corrections.

The ANSI 835 is the electronic payment and remittance advice standard format for health care claims. HIPAA regulations require the use of 835 as a set of rules to replace paper EOB's when health care providers receive electronic payments.


July 4, 2011 at 9:21 pm
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