What is a healthcare remittance?

Remittance is the process of sending a sum of money back to a person or organization electronically. In Healthcare claims, remittance usually refers to the process of insurance providers sending back payment to a hospital.

What is difference between remittance and EOB?

Difference of Recipient Both types of statements provide an explanation of benefits, but the remittance advice is provided directly to the health-care provider, whereas the explanation of benefits statement is sent to insured patient, according to Louisiana Department of Health.

What is a provider remittance?

Under federal law, a remittance transfer provider is a business that transfers money electronically for consumers to people and businesses in foreign countries. These companies include many money transmitters, banks and credit unions, and possibly other types of financial services companies.

What is remittance advice medical?

An electronic remittance advice, or ERA, is an explanation from a health plan to a provider about a claim payment. An ERA explains how a health plan has adjusted claim charges based on factors like: Contract agreements. Secondary payers. Benefit coverage.

What is a payment remittance?

What Is a Remittance? A remittance is a payment of money that is transferred to another party. Broadly speaking, any payment of an invoice or a bill can be called a remittance. However, the term is most often used nowadays to describe a sum of money sent by someone working abroad to his or her family back home.

Who receives the provider remittance advice?

With each check you will receive a Provider Remittance Advice (PRA), which is a statement explaining the services that are being paid. Similarly, patients receive an Explanation of Benefits (EOB) that defines what was paid by PHP and what is their payment responsibility to the provider .

Why did I get a remittance advice check?

Remittance advice is used by a customer to inform the supplier about a payment status. It contains important information such as the payment amount and what invoice numbers the payment is tendered. If an invoice is paid by check, it’s common to attach a paper remittance advice to the check.

Is cob the same as EOB?

COB can be used interchangeably with end of business (EOB), end of day (EOD), end of play (EOP), close of play (COP), and close of business (COB).

What is a remittance file?

A remittance letter is a document sent by a customer, which is often a financial institution or another type of firm, to a creditor or supplier along with payment to briefly explain what the payment is for so that the customer’s account will be credited properly.

What do remitting mean?

2 : to send money (as in payment) remit. noun.

What is the purpose of a remittance?

Many people use remittance as a means to send money back to their home country to provide financial support. Remittances are also used to aid developing countries and make up a portion of the gross domestic product (GDP).

What do remittances mean?

Definition of remittance 1a : a sum of money remitted. b : an instrument by which money is remitted. 2 : transmittal of money (as to a distant place)