Electronic Remittance Advice (ERA): Creating Efficiencies in Medical Billing

October 6th, 2016 By: Jessica Foglesong


Electronic Remittance AdviceCMS defines
electronic remittance advice (ERA) as an electronic explanation of payment and adjustments made during the adjudication of claims, and include information regarding payments, deductibles, adjustments, denials, missing or incorrect data, refunds, and claims withholding. Prior to ERAs, the medical billing department was responsible for reviewing each and every line item on a standard paper remittance advice (SPR) and manually inputting the information into medical billing or accounts receivable software.

As you can imagine, or as you may have experienced, this can be a tedious and time consuming process. ERAs are designed to create efficiencies by reducing errors and time spent on manual data entry, but the benefits don’t end there. CMS further outlines the advantages of ERAs to include:

  • Faster communication and payment notification
  • Faster account reconciliation through electronic posting
  • Automation of follow up action
  • Generation of less paper
  • Lower operating costs
  • Ability to create various reports
  • Ability to search for information on claims
  • More detailed information

With RxNT|PM, we have added to this list of benefits by developing software that auto allocates every line item within an ERA. This means that upon review of the ERA, you can batch post the payment quickly and efficiently.
If you are interested in learning more about the benefits of electronic remittance advice for your practice or billing company, click below to schedule a meeting with an RxNT Product Specialist.

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Jessica Foglesong RxNT

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