EDI 835 Health Care Claim Payment/Advice

EDI 835, also known as the Electronic Remittance Advice (ERA), is a type of electronic data interchange transaction set used in healthcare to communicate claim payment information. 
EDI-x12 transaction codes

What is EDI 835?

EDI 835 Health Care Claim Payment/Advice, also known as the Electronic Remittance Advice (ERA), is a standardized electronic transaction used in healthcare to communicate claim payment information. It serves as a digital explanation of benefits (EOB), detailing how a claim was adjudicated and the resulting payment or denial.

This electronic document complies with the ANSI X12 EDI specification.

Benefits of the EDI 835

All EDI documents are securely encrypted in transit, allowing trading partners to send sensitive data safely. By communicating the acceptance, rejection, and processing status of EDI transactions, it plays a critical role in ensuring efficient, accurate, and seamless data exchange between trading partners.

Enhanced Efficiency

Automate payment posting and reconciliation processes, saving time and reducing manual errors.

Improved Accuracy

 Minimize data entry errors and discrepancies in payment information.

Faster Reimbursements

 Accelerate the revenue cycle with quicker payment processing and posting.

Cost Reduction

Decrease administrative costs associated with paper-based remittance advice.

Better Cash Flow Management

Gain clearer insights into payment statuses and trends.

How EDI 835 Works

EDI 835 transactions follow a structured format, containing essential information about claim payments:

    1. Header: Includes payer and payee identification, payment date, and total payment amount.

    2. Claim Payment Information: Details individual claim payments, adjustments, and denials.

    3. Provider Adjustment Data: Specifies any adjustments not associated with specific claims.

    4. Service Line Items: Breaks down payments for individual services within a claim.

Healthcare providers receive this information electronically, allowing their practice management systems to automatically post payments and update patient accounts.

Applications in Healthcare

  • Hospitals: Streamline billing processes for complex, multi-service claims.
  • Physician Practices: Automate payment posting and reduce administrative burden.
  • Dental Offices: Quickly reconcile insurance payments with submitted claims.
  • Mental Health Providers: Efficiently manage payments for ongoing treatment series.
  • Pharmacies: Accurately process payments for prescription claims.

Frequently Asked Questions

EDI 835 transactions are highly secure, using encryption and standardized protocols to protect sensitive healthcare and financial data.

Absolutely! EDI 835 is designed to handle a wide range of payment situations, including bundled payments, capitation, and complex adjustments.

Most modern healthcare IT systems support EDI 835. However, it’s essential to check with your software vendor or IT team to ensure compatibility.

Implementation timelines vary, but many organizations can be up and running with EDI 835 in a matter of weeks with proper planning and support.

Contact us to get Started Today!

Experience the effortless power of Commport’s Integrated EDI solution today! Say goodbye to complicated and costly software installations, and forget about the need to be an EDI expert or create your own mappings. Our seamless solution adapts effortlessly to your business’s growth, making adding new customers a breeze.

With fast and reliable translation, you can rest assured that your EDI processes are in safe hands, allowing you to focus on what truly matters – your business. 

Take the next step towards efficiency and success with Commport. 

 

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Looking for more? We got you!

We got the goods to help you utilize your EDI services effectively. We encourage you to explore our available resources below

Commport EDI Buyers Guide

Full List of EDI ANSI X12 Documents and Transactions

Read the full list of EDI x12 Documents and Transactions. PDF version available for download!
The Complete EDI Guide

The Complete EDI Guide

Dive into this complete guide to all things EDI. From the history to EDI to the costs of doing EDI, this guide covers it all! Dive in
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Getting Started with EDI

EDI can make life so much easier for businesses that need to pile through hundreds of pages of reports, invoices and data. Sounds great—but what does your business need to get started with EDI? Find out where to start!

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