Electronic Remittance Advice Basic Guides
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. The Electronic Remittance Advice provides the same information as a paper advice, and, when used in conjunction with the necessary Electronic Remittance Advice (ERA) reader software, can be posted automatically to supplier accounts receivable and/or patient billing systems.
Electronic Remittance Advice Advantages
- Faster communication and payment
- Information is portable, reusable, retrievable and is easily stored
- Can be exchanged between partners with much greater ease than a paper remittance advice
- Faster account reconciliation via electronic posting
- Displays withholding/collection information on the Summary Page
- Detailed information and reporting
- Improves office productivity
- Automation of follow-up action
- Paperwork reduction
Benefits to choosing ERA vs. SPR:
- 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.
Noridian EDI Support Services (EDISS) constantly strives to educate providers on the benefits of exchanging data electronically.