Advantages of ERAs and EFTs in Payment Posting for Medical Billing

Advantages of ERA & EFT Payment Posting in Medical Billing

Today, hospitals, group medical practices, and clinics face a significant challenge everyday - that of processing a large amount of EOBs or remittance paperwork on a daily basis which accompanies the payments received from insurance payers.

On an average, more than 20% of the medical payments today are keyboarded manually due to the inability of payers to provide an electronic remittance advice (835/ERA) back to the providers. This in turn costs providers a lot of time and resources while forcing them to re-enter payments manually. This process, also known as payment posting, is very important as any wrong posting can result in inaccurate accounting, further causing problems down the line.

ERAs and EFTs to the Rescue

Both ERAs and EFTs are technologically-advanced electronic tools which can help you save time and money. Let's have a look at them in detail.

Electronic Remittance Advice (ERA): It is a form of electronic communication which is HIPAA-compliant and contains claims payment information. With the help of ERAs, you can replace the paper-based Explanation of Benefits (EOB) statement. Some other benefits of ERA in payment posting include -
- Depending on the AR software, one can post payments without any manual intervention
- ERA is available for all types of benefit plans
- Separate ERA files can be received for the same TIN (tax identification number) and can be grouped by billing address
- Printable versions of ERAs make it easier to submit COB (coordination of benefits) claims
Electronic Funds Transfer (EFT): EFTs offer an efficient, secure process for electronically depositing claims payments into a particular bank account. Some of the benefits of EFT in payment posting include -
- Faster payments as compared to paper checks
- Secure and confidential deposits of claims payments
- Reduced handling time by staff members and paper usage
- Payments can be easily verified by matching them to ERAs

The Advantages of ERAs and EFTs in Medical Billing

The healthcare industry implemented a standard, technically labeled ANSI 835, for electronic insurance payments and reconciliation just a few years back. Both ERA and EFT are an integral part of this standard. While Electronic Funds Transfer (EFT) ensures insurance companies are able to deliver electronic healthcare payments to providers upon adjudication of valid claims, Electronic Remittance Advice (ERA) is generated as a standard report format which is then sent by insurance companies to providers as an explanation of payments made. Both these technologies together help to expedite the delivery of insurance payments while simplifying the overall procedure of reconciliation of patient accounts.

Advantages of EFT in Medical Billing

Advantages of ERA in Medical Billing

Advantages of EFT in Medical Billing

Funds can be transferred directly to a bank account thereby improving cash flow
Payments can be easily matched to remittances easily
Files can be imported directly into a practice management system of your own choice, thereby eliminating the need for manual entry
Remittances can be viewed online and printed as and when necessary
Multiple bank accounts can be used if required
Payment management from multiple insurance companies becomes easier
There are many security features to ensure each user's access is strictly controlled
Easy-to-use search and reporting tools are available
Faster access to funds
Elimination of risks such as paper checks being lost, inaccurate credit deposits, etc.

Advantages of ERA in Medical Billing

Reduction in transactional time, compliance issues, and administrative costs
No need to manually enter, verify, and post payment checks
Annual savings of up to $15,000
Ability to quickly sort between paid and unpaid ERAs for easier accounting
Easy denials organization through a manageable application
Real-time analytic reports for better clarity
Easy verification on a charge-by-charge or check-by-check basis
Increased rate of payment collection by being able to pinpoint claims underpayments easily
Better first pass resolution rates, enhanced collection efforts, and decreased denials
Convenient access to patient statements

Our Related Services

Choose Outsource2india for High-quality Medical Accounts Receivable Services

At O2I, we understand that payment posting is an integral part of medical accounts receivable services. We are acutely aware of the sensitivity of the whole process, and understand that an accurate and efficient process can help clients save on costs while increasing their operational efficiency.

We process over 150,000 medical billing transactions per month for our clients in the USA alone, and some of the key benefits of our process include -

Our accurate medical billing processes help you gain an in-depth understand of your revenue cycle for better revenue management
We help you easily segregate adjustments and denials so as to resolve recurring problems
All errors are reduced since we verify all ERTs with their respective ERAs

Want to know more about our time-tested and streamlined medical billing procedures? Contact us right away and reap the benefits of partnering with a truly global service provider.