Under the new Health Insurance Portability and Accountability Act (HIPAA) version 5010 standards, the electronic remittance advice (ERA) transaction has been enhanced to include such information as a patient’s coverage expiration date and the claim received date. In addition, ERAs for Medicare claims will include national and local coverage determinations so physicians can easily identify which items and services Medicare will cover. These changes will eliminate much of the time-consuming research physicians previously had to perform.
Click here to learn more about the benefits of using ERA from an AMA webinar.
Accepting electronic remittance advice (ERA) and automating your claims process can:
- Speed up payment
- Save time spent on manual processes such as opening mail, filing and phone calls to health insurers
- Eliminate lost EOBs and expedite filing to secondary payers
- Free time for revenue-enhancing functions such as ensuring correct payment
Cost of paper EOBs: $2.96 x 6200 = $18,600
Cost of electronic remittance advice: $1.48 x 6200 = $9,176
Annual savings from claims automation per physician: $9,424*
*Based on an annual average of 6,200 claims submitted for a single physician. Source: Milliman, Inc., Electronic Transaction Savings Opportunities for Physician Practices. Technology and Operations Solutions. Revised: January 2006