WHAT ARE THE ADVANTAGES OF EOBs, EFT, AND ERAs?

Synapse works to make sure all our clients’ processes are efficient. Hence, we enroll our clients in electronic insurance services wherever possible. It is always surprising to see how many of our new clients do not take advantage of the benefits of going paperless. Besides the risks of losing correspondence in the mail, here are some other things to think about when going paperless.

EOBs (Explanation of Benefits) and ERAs (Electronic Remittance Advice)

A paper EOB provides details about the amount billed, the amount paid by the health plan, and an explanation of any differences between the billed and paid portions. An ERA is a standardized electronic version of a paper EOB. Using ERAs allows for:

  • Faster payment
  • Less manual work
  • Better and consistent denial management.

EFT (Electronic Funds Transfer)

With EFT, the transfer of funds is done electronically, which means there are no paper checks. Like direct deposit of employee paychecks, EFT transfers payments electronically between the financial institutions of health plans and providers. Like ERA, EFT is beneficial to any practice for:

  • Faster payment
  • Simple reconciliation
  • Enhances productivity in the practice
  • Less risk of fraud.

Using ERA and EFT together will increase a practice’s efficiency and reduce costs. Contact Synapse today to see how we can help you.