An electronic remittance advice, sent as an X12 835 transaction, tells the provider what was paid, adjusted or denied for each claim line, with reason codes. It is the electronic equivalent of a paper explanation of benefits (EOB).
ERAs allow payments to be auto-posted to patient accounts and denials to be routed for follow-up the same day.
Related terms
- EOB (explanation of benefits)
- A statement from the insurer explaining how a claim was processed.
- Payment posting
- Recording insurance and patient payments and adjustments against claims.
- CARC (claim adjustment reason code)
- The standard code that explains why a claim line was paid differently than billed.