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Glossary

ERA (electronic remittance advice)

The electronic explanation of a claim payment sent by a payer, which a PMS can auto-post to the ledger.

ERA auto-posting removes hours of manual payment entry per week. It requires both clearinghouse and PMS support.

ERA, EOB and EFT

An explanation of benefits (EOB) is the paper or PDF statement of how a claim was paid. An ERA is the same information as structured data, the HIPAA 835 transaction. Electronic funds transfer (EFT) is the payment itself arriving in your bank account.

The three are enrolled separately with each payer, often through your clearinghouse, and enrollment can take weeks.

Auto-posting

With ERA auto-posting the practice management system matches each line to the claim, posts the payment and adjustment and flags exceptions such as denials or downgrades. Staff review the exceptions instead of typing every payment.

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