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Plot No. 27 Scheme No. 54, Vijay Nagar Indore - 452010
Mon - Fri: 09:00 - 05:00
Remittance Management is a critical part of the Revenue Cycle Management (RCM) process in healthcare, where the focus is on accurately processing and reconciling payments received from insurance companies and patients. It involves interpreting and managing Electronic Remittance Advice (ERA) and Explanation of Benefits (EOB) documents, applying payments to the appropriate accounts, and resolving any discrepancies between expected and received payments.
Effective remittance management ensures that healthcare providers receive correct reimbursements and maintain financial accuracy within their billing systems.
ERA is a digital document that provides details about the payments made by insurance companies for healthcare services. It contains critical information such as:
ERAs are typically received electronically from insurance companies and integrated into the provider’s practice management or billing system. Automated systems can import ERAs and match them with the corresponding claims for payment posting.
EOBs are detailed paper or electronic documents issued by payers explaining what medical services were paid or denied and the reasons for any adjustments.
EOBs are used to manually reconcile payments when electronic processes (such as ERAs) are not in place, ensuring the provider has a detailed record of payments, adjustments, and patient responsibility.
Payment posting refers to the process of applying the payments detailed in an ERA or EOB to the correct patient accounts and claims in the provider’s billing system.
Payments can be full, partial, or denied, and remittance management involves ensuring that each claim is updated accurately.