Electronic remittance advice

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Electronic Remittance Advice

Electronic Remittance Advice (ERA), pronounced /ɪˈlɛktrɒnɪk rɪˈmɪtəns ədˈvaɪs/, is a digital report or notification that provides details about medical insurance payments. It is an electronic version of a paper remittance advice slip, which accompanies a payment made by an insurance company to the healthcare provider.

Etymology

The term "Electronic Remittance Advice" is derived from the combination of three words. "Electronic" (from the Greek word "electron" meaning amber, by way of the English word "electricity"), "Remittance" (from the Latin word "remittere" meaning to send back) and "Advice" (from the Old French word "aviser" meaning to perceive or notice).

Definition

An Electronic Remittance Advice (ERA) is a statement sent by the health insurance company directly to the provider explaining the payment of their claims, while also providing explanations in the case of any denial of payments. ERAs are typically sent in the ANSI 835 format, which is a standard format for electronic transmission of healthcare payment and benefit information.

Related Terms

  • Electronic Funds Transfer (EFT): This is a digital transfer of funds from one bank account to another, without any paper money changing hands. EFT is often used in conjunction with ERA in the healthcare industry to speed up the payment process.
  • Health Insurance Portability and Accountability Act (HIPAA): This is a US law designed to provide privacy standards to protect patients' medical records and other health information provided to health plans, doctors, hospitals and other health care providers.
  • ANSI 835: This is a data format for electronic transmission of healthcare payment and benefit information, used by healthcare insurance companies.

External links

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