{"id":11646,"date":"2020-08-12T14:30:22","date_gmt":"2020-08-12T09:00:22","guid":{"rendered":"https:\/\/www.medicalbillersandcoders.com\/blog\/?p=11646"},"modified":"2026-05-15T13:58:42","modified_gmt":"2026-05-15T08:28:42","slug":"what-is-eob-or-era-in-healthcare","status":"publish","type":"post","link":"https:\/\/www.medicalbillersandcoders.com\/blog\/what-is-eob-or-era-in-healthcare\/","title":{"rendered":"What is EOB or ERA in healthcare?"},"content":{"rendered":"<p style=\"text-align: justify;\">Physicians always wish to get reimbursement in the first attempt. To get the reimbursement in the first attempt providers need to eliminate some repetitive errors. This can happen if the provider or their hired staff for billing can read EOB or ERA interpret correctly and understand. There is always some percentage of getting claims denied. Read further how to read EOB and you can <a href=\"https:\/\/www.medicalbillersandcoders.com\/revenue-management-services.aspx\">boost your collection<\/a>.<\/p>\r\n<p style=\"text-align: justify;\">Two to three weeks after claims submission the medical practitioner will receive a reply from the payor in the form of EOB\/ERA to inform them about their decision as to whether the claim will be paid or denied.<\/p>\r\n<h2 style=\"text-align: left;\">Difference between EOB and ERA:<\/h2>\r\n<p style=\"text-align: justify;\">The difference between these two is the delivery method.<\/p>\r\n<h3 style=\"text-align: left;\">EOB: Explanation of Benefits<\/h3>\r\n<p style=\"text-align: justify;\">The EOB is generated when the provider submits a claim for the services provided by him to patients. An EOB receives a provider via traditional mail. Payment will be sent as a check via traditional mail.<\/p>\r\n<h4 style=\"text-align: justify;\">The insurance company sends you EOBs to help make clear:<\/h4>\r\n<ul style=\"text-align: justify;\">\r\n<li>The cost of the care provided by the physician<\/li>\r\n<li>Any money you saved by a patient visiting in-network providers<\/li>\r\n<li>Any out-of-pocket medical expenses patient will be responsible for<\/li>\r\n<\/ul>\r\n<h3 style=\"text-align: left;\">ERA: Electronic Remittance Advice<\/h3>\r\n<p style=\"text-align: justify;\">An ERA, name itself suggests that it will be sent electronically. If there is a payment associated with the ERA, it will either be sent as a check via traditional mail or delivered by EFT (electronic funds transfer often known as direct deposit). Though you are enrolled for ERA you need to associate your bank details so that they can initiate a direct deposit.<\/p>\r\n<p style=\"text-align: justify;\">ERA is faster than EOB as it will be received to you the day when they release it.<\/p>\r\n<h2 style=\"text-align: left;\">Why EOB or ERA?<\/h2>\r\n<p style=\"text-align: justify;\">The purpose of an EOB or ERA is to provide payment and denials details to the provider for the claims they submitted. It will explain the amounts, such as deductibles, co-insurance, and co-payments, that the patient is responsible for paying out of pocket. Finally, the EOB or ERA will show you how to properly apply the payments to patient\u2019s accounts so you can keep track of what is paid and what is outstanding.<\/p>\r\n<p style=\"text-align: justify;\">To keep a track of payments and patient responsibility amount details the biller must enter all information from the EOB into the practice\u2019s practice management software e.g. Brightree, AdvancedMD, etc.<\/p>\r\n<h3 style=\"text-align: left;\">Benefits of entering information into Billing software:<\/h3>\r\n<ul style=\"text-align: justify;\">\r\n<li style=\"text-align: left;\">It helps to understand overall reimbursed amount and taxes<\/li>\r\n<li style=\"text-align: left;\">Patient responsibility amount to be collected<\/li>\r\n<li style=\"text-align: left;\">Unpaid or incorrectly paid claims need follow up<\/li>\r\n<\/ul>\r\n<h3 style=\"text-align: left;\">Inside of EOB\/ERA:<\/h3>\r\n<ul style=\"text-align: justify;\">\r\n<li style=\"text-align: left;\">Your name, or the name of your dependent (whoever received the service)<\/li>\r\n<li style=\"text-align: left;\">The name of the health care provider who administered care \u2013 doctor, dentist, specialist, laboratory, hospital, or clinic<\/li>\r\n<li style=\"text-align: left;\">Your (or your dependent\u2019s) health insurance ID or policy number, and the claim number<\/li>\r\n<li style=\"text-align: left;\">The type of service or equipment you received and the date on which you received it; for service that lasted more than one day, the date range will be given<\/li>\r\n<li style=\"text-align: left;\">The cost of the service (what your provider billed the insurance company)<\/li>\r\n<li style=\"text-align: left;\">How much of the billed amount your insurance company paid?<\/li>\r\n<li style=\"text-align: left;\">The remaining amount to be paid, which is usually your responsibility<\/li>\r\n<\/ul>\r\n<p style=\"text-align: justify;\">The allowed amount is the maximum payment that you can receive on each line item. The difference between the insurance\u2019s allowed amount and your charge amount is called the contract adjustment. The contract adjustment is a write-off.<\/p>\r\n<p style=\"text-align: justify;\">The difference between the allowed amount and the payment amount, that balance is the patient\u2019s responsibility (out of pocket). A deductible is a patient\u2019s annual out-of-pocket payment before insurance will begin paying.<\/p>\r\n<p style=\"text-align: justify;\">A co-pay is a small out of pocket amount due for each visit. It is usually paid prior to seeing the doctor. The patient\u2019s co-insurance is a share of the bill. It is usually a percentage of the allowed amount.<\/p>\r\n<p style=\"text-align: justify;\"><strong>Do you want to know how to get reimbursement faster? <\/strong><\/p>\r\n<p style=\"text-align: justify;\">Contact us at <a href=\"mailto:info@medicalbillersandcoders.com\">info@medicalbillersandcoders.com<\/a> or call us at <a href=\"tel:888-357-3226\"><strong>888-357-3226<\/strong><\/a>.<\/p>\r\n<h2>FAQs<\/h2>\r\n\r\n<div class=\"schema-faq wp-block-yoast-faq-block\">\r\n<div id=\"faq-question-1746180991257\" class=\"schema-faq-section\"><strong class=\"schema-faq-question\"><strong>1. What is the difference between an EOB (Explanation of Benefits) and an ERA (Electronic Remittance Advice)?<\/strong><\/strong>\r\n<p class=\"schema-faq-answer\">The main difference lies in the delivery method. An EOB is a paper statement sent via traditional mail, whereas an ERA is delivered electronically. Both provide details about claim payments or denials, but an ERA typically reaches the provider faster, especially if payment is made via EFT (Electronic Funds Transfer).<\/p>\r\n<\/div>\r\n<div id=\"faq-question-1746181011167\" class=\"schema-faq-section\"><strong class=\"schema-faq-question\"><strong>2. Why are EOBs and ERAs important in the medical billing process?<\/strong><\/strong>\r\n<p class=\"schema-faq-answer\">EOBs and ERAs help healthcare providers understand how much has been paid by the insurance, what remains the patient&#8217;s responsibility (e.g., co-pays, deductibles), and whether any claims were denied. This information helps providers correctly apply payments and follow up on unpaid or incorrectly paid claims.<\/p>\r\n<\/div>\r\n<div id=\"faq-question-1746181024525\" class=\"schema-faq-section\"><strong class=\"schema-faq-question\"><strong>3. How can reading EOBs and ERAs help boost collections?<\/strong><\/strong>\r\n<p class=\"schema-faq-answer\">Proper interpretation of EOBs and ERAs allows billing staff to identify payment errors or denials, enabling them to take corrective action promptly. By addressing these issues early, providers can improve their chances of getting reimbursed on the first attempt, thus boosting overall collections.<\/p>\r\n<\/div>\r\n<div id=\"faq-question-1746181039881\" class=\"schema-faq-section\"><strong class=\"schema-faq-question\"><strong>4. How long does it take to receive an EOB or ERA after claim submission?<\/strong><\/strong>\r\n<p class=\"schema-faq-answer\">Typically, providers receive an EOB or ERA from the insurance company 2 to 3 weeks after submitting a claim. ERAs tend to be faster since they are sent electronically, often arriving the same day as they are issued by the payer.<\/p>\r\n<\/div>\r\n<div id=\"faq-question-1746181061907\" class=\"schema-faq-section\"><strong class=\"schema-faq-question\"><strong>5. How does billing software improve the management of EOBs and ERAs?<\/strong><\/strong>\r\n<p class=\"schema-faq-answer\">Entering EOB and ERA data into billing software helps healthcare providers track payments, patient responsibility, and unpaid claims. Software like Brightree or AdvancedMD simplifies payment tracking, ensures accuracy, and flags claims requiring follow-up, improving both efficiency and collections.<\/p>\r\n<\/div>\r\n<\/div>\r\n","protected":false},"excerpt":{"rendered":"<p>Physicians always wish to get reimbursement in the first attempt. To get the reimbursement in the first attempt providers need to eliminate some repetitive errors. This can happen if the provider or their hired staff for billing can read EOB or ERA interpret correctly and understand. There is always some percentage of getting claims denied. [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":11648,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[900,746,921,922,80,747,30,359,778,737,738,46,47,751,198,419,15,417,162,724,9,11,64,16,339,146,192,753,754,418,144,815,816,699,86,904,1070,58,34,27,785,905,758],"class_list":["post-11646","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-medical-billing-services","tag-account-receivable","tag-billing-services-for-doctors","tag-coronavirus","tag-covid-19","tag-cpt-codes","tag-cpthcpcs","tag-credentialing","tag-dme-billing-services","tag-dmepos","tag-e-m-codes","tag-e-m-services","tag-ehr","tag-emr-ehr-health-it","tag-hcpcs-code","tag-hospital-billing","tag-internal-medicine-billing","tag-medical-billing","tag-medical-billing-agencies","tag-medical-billing-and-coding-services","tag-medical-billing-audit","tag-medical-billing-companies","tag-medical-billing-outsourcing","tag-medical-billing-practices","tag-medical-billing-service","tag-medical-coding-audits","tag-medicare-2","tag-medicare-medicaid-services","tag-medicare-billing","tag-modifier","tag-online-medical-billing","tag-outsource-medical-billing","tag-outsourced-medical-billing-company","tag-outsourced-medical-billing-services","tag-outsourcing-primary-care-billing","tag-physician-billing","tag-prior-authorization","tag-radiation-oncology","tag-rcm","tag-reimbursement","tag-revenue-cycle-management-2","tag-telehealth","tag-telemedicine","tag-value-based-reimbursement"],"yoast_head":"<!-- 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Dedicated to educating healthcare professionals on compliance, accuracy, and strategies to improve billing performance.\",\"sameAs\":[\"https:\\\/\\\/www.medicalbillersandcoders.com\\\/\",\"https:\\\/\\\/www.linkedin.com\\\/in\\\/debbie-young-4544a631a\\\/\"]},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/www.medicalbillersandcoders.com\\\/blog\\\/what-is-eob-or-era-in-healthcare\\\/#faq-question-1746180991257\",\"position\":1,\"url\":\"https:\\\/\\\/www.medicalbillersandcoders.com\\\/blog\\\/what-is-eob-or-era-in-healthcare\\\/#faq-question-1746180991257\",\"name\":\"1. What is the difference between an EOB (Explanation of Benefits) and an ERA (Electronic Remittance Advice)?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The main difference lies in the delivery method. An EOB is a paper statement sent via traditional mail, whereas an ERA is delivered electronically. Both provide details about claim payments or denials, but an ERA typically reaches the provider faster, especially if payment is made via EFT (Electronic Funds Transfer).\",\"inLanguage\":\"en-US\"},\"inLanguage\":\"en-US\"},{\"@type\":\"Question\",\"@id\":\"https:\\\/\\\/www.medicalbillersandcoders.com\\\/blog\\\/what-is-eob-or-era-in-healthcare\\\/#faq-question-1746181011167\",\"position\":2,\"url\":\"https:\\\/\\\/www.medicalbillersandcoders.com\\\/blog\\\/what-is-eob-or-era-in-healthcare\\\/#faq-question-1746181011167\",\"name\":\"2. Why are EOBs and ERAs important in the medical billing process?\",\"answerCount\":1,\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"EOBs and ERAs help healthcare providers understand how much has been paid by the insurance, what remains the patient's responsibility (e.g., co-pays, deductibles), and whether any claims were denied. 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