The 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.

An ERA is a standardized electronic version of a paper explanation of benefits (EOB). Like a paper EOB, an ERA provides details about the amount billed, the amount being paid by the health plan, and an explanation of any discrepancies between the billed and paid amounts.

Health plans are required to use standardized codes in ERAs to explain payment reductions and denials.

Benefits to choose ERA

  • Receive your remittances the day the claim finalizes, rather than waiting until the mail arrives a week after the payment was made.
  • Billing software has the ability to autopost electronic remittances, allowing to more accurately reconcile outstanding balances.
  • 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.
  • By getting your remittance earlier than a paper remittance, you are able to forward your information on to additional insurances quicker.
  • Reduces costs associated with staff time to review and file paper remittances.

Difference Between the Explanation of Benefits and Electronic Remittance Advice

The explanation of benefits and the remittance advice are similar statements that only vary slightly.

An ERA is a standardized electronic version of a paper explanation of benefits (EOB).

The ERA eliminates the need to handle paper, open mail and file papers, as well as the risk of misplaced EOBs

Recipient : The major difference between a remittance advice and an explanation of benefits is in who receives the statements. Both types of statements provide an explanation of benefits, but the remittance advice is provided directly to the health-care provider, whereas the explanation of benefits statement is sent to insured patients.

Electronic filing:  the statements are printed and mailed within a specified time frame, the turn-around time on many medical claims can take a significant amount of time. Many health-care and insurance providers are moving toward the use of electronic filing, which will make the traditional remittance advice obsolete.



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