By Haley Holmes
May 15, 2023
Running a medical practice is like running any other business. Being paid is what keeps a business alive, so accurate posting insurance payments ought to be our top priority. To a commoner, payment posting services may seem like a simple task but it is one of the crucial steps in the revenue cycle process that contributes to the successful management of finances in hospitals. To better elucidate its importance here's an example - Let's assume that the person working on the claims mistakenly entered $7009 instead of $709 and didn’t catch it but moved on. Well, this could lead to several issues down the line. Firstly, the patient receives a shockingly expensive bill that makes them lose trust with the practice. Additionally, the practices' AR shows incorrect figures and the overall financial picture goes awry with the omission of just one number. Payment posting services provide a snap shot of the practice’s daily revenue stream and should never be overlooked. Effective payment posting services help to spot potential mistakes quickly and make the necessary corrections.
Need for ERAs, EFTs and eEOBs
Today, medical practices across the US are facing a significant challenge of processing large volumes of paper-originated healthcare remittances, known as Explanation of Benefit (EOBs). With many payers still using paper-based EOBs, providers feel burdened to manually enter and validate data. Moreover, this out-dated approach to claims payment is prone to errors and can lead to claim denials. This needs to be replaced by electronic claims payment methods to improve speed and accuracy of payments. Electronic Remittance Advice (ERA), Electronic Fund Transfer (EFT) and Electronic EOBs are some electronic methods introduced in the billing industry to streamline the manual payment processes and help providers get paid quickly. MedData reports that 85% of medical practices prefer electronic payment mechanisms. These technologically advanced electronic tools not only eliminate the need for checks, paper EOB’s but also get funds fast with direct deposits.
Electronic Remittance Advice (ERA)
The Electronic Remittance Advice came into effect from January 1, 2014. As the name suggests this is something that is sent by insurance companies to providers and includes payment information about a claim. ERA is HIPAA compliant and contains information like claims paid, claims denied along with reasons, payment adjustments made, payment method and final claim status. We know that accuracy is the top priority while posting insurance payments. According to the US Department of Health and Services payment posting is more accurate when ERA is used. Similarly, The Centers for Medicare & Medicaid Services has asserted that ERA is faster and more efficient than paper format. For a busy physician time is precious. By far, the biggest benefit of ERAs is that it reduces costs, saves time, eliminates posting errors, and shortens the payment cycle.
Electronic Fund Transfer (EFT)
This service puts funds directly into the provider's bank account, rather than mailing a paper check. This is used by insurance companies in the US to reimburse claim amounts directly into the medical provider's account. An electronic message is sent by the insurance company to the financial institution requesting them to electronically transfer the funds to the medical providers account to pay for the healthcare services provided by them. The EFT message includes details like the amount to be paid, date of payment, identity of payer and payee, bank account information and the routing number. EFT ensures faster, more secure and confidential deposit of claims payments when compared to checks. ERA when used in conjunction with EFT enables automated reconciliation and posting.
Electronic Explanation of Benefits (eEOB)
Electronic EOBs have the same information as that of paper EOBs. e-EOB is merely a synonym for ERA. It is simply a digital version of the EOB sent out by an insurance carrier to the medical provider explaining what was paid for services rendered to their patients. Electronic EOBS are secure, convenient and won't clutter up. So, it's time to go paperless and switch to electronic EOBs.
The upshot
Payment posting is never a simple "heads-down" data entry task. At Scribe4Me we understand that an accurate and efficient process can help providers save on costs while increasing their operational efficiency. The above discussed technological tools are time and cost saving options but require expert handling and frequent updating. As a busy medical practitioner it could be nearly impossible to take care of all this while focusing on your core clinical activities. Therefore most medical practitioners choose to outsource their payment posting services to billing experts like Scribe4Me. This way, our payment posting professionals can efficiently handle the tools and assist you in expediting the insurance payments and improving cash flow to your practice. What’s more? We are experts in matching EOB data against payments received, identifying issues with deductibles and copays, spotting denials and non-covered services etc. To know more about our payment posting services, get in touch with us, today.
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Haley Holmes
Haley Holmes
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