Which electronic form is used to post payments?

Which electronic form is used to post payments?

• A. Electronic remittance advice (ERA)
• B. Electronic funds transfer (EFT)
• C. Medicare summary notice
• D. Electronic data interchange (EDI)

Answer: (A)

Posting payments relies on the Electronic Remittance Advice, which is the detailed payer explanation that accompanies an electronic payment and shows exactly how the payment was calculated—what was paid, what was adjusted, what was denied, and the patient’s responsibility. This information is what your billing system uses to accurately post the payment to the patient’s account and reconcile the claim with the remittance. Electronic funds transfer is about moving the funds itself to the bank, not providing the payment details needed to post to the ledger. Medicare Summary Notice is a beneficiary-facing document that explains what Medicare paid and what was denied, not a posting document for the provider’s accounts. Electronic Data Interchange is the overall method for transmitting transactions electronically; it can carry remittance data, but the specific form used to post payments is the Electronic Remittance Advice.

Posting payments relies on the Electronic Remittance Advice, which is the detailed payer explanation that accompanies an electronic payment and shows exactly how the payment was calculated—what was paid, what was adjusted, what was denied, and the patient’s responsibility. This information is what your billing system uses to accurately post the payment to the patient’s account and reconcile the claim with the remittance.

Electronic funds transfer is about moving the funds itself to the bank, not providing the payment details needed to post to the ledger. Medicare Summary Notice is a beneficiary-facing document that explains what Medicare paid and what was denied, not a posting document for the provider’s accounts. Electronic Data Interchange is the overall method for transmitting transactions electronically; it can carry remittance data, but the specific form used to post payments is the Electronic Remittance Advice.