What Is ERA in Medical Billing?
Being the owner of a small medical practice can be overwhelming at times, especially when it comes to managing finances. One important aspect of financial management is understanding the electronic remittance advice, or ERA.
In this article, we’ll break down what ERA is, how it operates, and why it’s a game-changer in the medical industry. And don’t worry, we’ll also touch on how medical billing services can help you make the most of ERA.
Explaining ERA In Medical Billing
So, what is ERA in medical billing? Well, it’s a digital version of the traditional paper EOB (Explanation of Benefits) statement.
Essentially, an ERA is an electronic report that insurance companies send to healthcare providers after processing a patient’s insurance claim. This report outlines all the main details of the payment, including the patient’s name, claim number, date of service, type of service, amount paid, and health insurance ID, so both the provider and the patient know exactly what’s going on.
This isn’t to be confused with an Electronic Funds Transfer (EFT), which refers to the process of making electronic payments and a direct deposit from one bank account to another. In the context of medical billing, EFT is used to transfer payments from the insurance company’s account to the healthcare provider’s account.
So, to put it simply, ERA provides information about the payment, while EFT transfers the payment from insurance companies to the healthcare provider. The use of both ERA and EFT helps to streamline the medical billing process, making it faster and more efficient.
How Does ERA Work?
Medical practices need a billing system that can receive and process electronic files, and then the insurance company sends the ERA file to the practice’s system. This file is processed automatically, and payment information is reconciled with the medical practice’s records.
If there are any discrepancies, the billing system will flag the issue, and the medical practice can take steps to resolve it.
What Is ERA In Medical Billing Good For?
Faster Claims Processing
One of the biggest benefits of ERA is that it speeds up the claims processing time. With the use of ERA, medical billing services can process claims within 24 to 48 hours, compared to the traditional paper-based method that can take up to a week.
This means you’ll get your payment quicker and there’s a lower chance of denied claims – not a bad deal.
Another fantastic benefit of ERA is that it improves accuracy. With ERA, small medical practices can ensure they receive the correct payment for each service provided to a patient, eliminating errors and disputes that can arise from manual reconciliation processes.
Better Patient Experience
With the electronic payment process, patients can receive their insurance payments faster and have access to their payment information quickly and easily.
This makes understanding what your insurance has covered a breeze and helps improve the overall experience for patients.
Saves Time & Money
Finally, ERA can save both time and money. By reducing the time it takes to process claims and receive payment, practices can focus on growing their business and providing top-notch care to their patients.
Outsourcing With PMN
Now, let’s talk about how medical billing services can play a role. Many medical billing services have extensive experience with ERA and can help small medical practices make the most of it.
With PMN, a medical billing company specializing in helping small practices, you can be sure that your ERA process is in good hands.
PMN uses the latest technology to receive and process ERA files from insurance companies, providing you with accurate and up-to-date payment information in a timely manner. Their team of expert billing specialists will reconcile the payment information with your records, ensuring that you receive the maximum amount of payment for the services you provide.
Additionally, by having PMN manage your ERA process, you can be assured that your billing data will be secure and conform to HIPAA standards, providing you with peace of mind.
Plus, you’ll have more time to focus on your patients, as PMN takes care of the time-consuming and complicated aspects of medical billing.
In short, by outsourcing your medical billing services, you’ll have a streamlined and efficient ERA process that maximizes your revenue, saves you time, and provides detailed reports on your practices health. So, why wait? Contact PMN today at (949) 215-5055 or their office in Laguna Hills, Orange County, California, and experience the benefits of ERA in your medical billing process!
How Does ERA Differ From EOB?
EOB, or Explanation of Benefits, is a document sent by insurance companies to patients that explains the payment made for specific medical services. ERA is similar, but it is sent to healthcare providers and contains more detailed information, such as the reason for any denied claims.
What Is ERA In Medical Billing Used For Besides Payment Tracking?
ERA can actually be used for a variety of purposes beyond payment tracking. For example, it can be used to monitor claims submissions and track the status of outstanding claims, as well as to identify any billing or coding errors that may be affecting payment.
How Can Healthcare Providers Ensure They Receive Accurate ERA Information?
This can be done by confirming that the billing system is properly configured to receive ERA and regularly reviewing the information they receive to identify any discrepancies or errors.
Additionally, practice owners can work with their insurance companies to establish clear communication and resolve any payment issues in a timely manner.