Benefits of ERAs/EFTs
The introduction of ERAs (Electronic Remittance Advice) and EFTs (Electronic Funds Transfer) created a revolutionary change in the healthcare billing domain by replacing traditional, paper-based EOBs (Explanation of Benefits). Though the facility has been available for many years, even today only 46% of the claims are processed electronically, while the remaining 54% claims are processed in the traditional paper-based method. However, the Patient Protection & Affordable Care Act (PPACA) under section 1104 has mandated that all healthcare plans adopt and support EFT/ERA operating rules before the deadline - January 1st, 2014. Before adopting ERAs and EFTs in your system, get to know their benefits:
Cut-down Processing Time: The major benefit of implementing ERAs/EFTs in one’s system is that it considerably brings down the medical claims billing processing time. While payment postings are done electronically, the time involved in posting paper EOB payments manually gets reduced. The electronic way of posting payments has quickened and accelerated the cash flow of Providers to a significant level. Also since everything is electronic, the time a paper check or EOB spends in the traditional ‘snail mail’ system is avoided. EFTs transfer the funds directly into the Provider’s bank account or a lock box.
Reduced Manual Effort: By adopting ERAs and EFTs, Providers and healthcare billing companies can reduce manual effort significantly. Therefore, there is no need for recruiting new employees who are adept at payment postings. Also, it is not necessary to train the existing employees on the payment posting method. This manual effort can be used for other complicated medical claims billing functions.
Auto Posting Efficiency: EFTs/ERAs allow the use of auto posting feature, which enables posting of payments on to the system automatically. The error rate of the automated posting method is less than that of manual posting. The manual effort involved in correcting these minimal errors is also less.
Cost Efficient: Healthcare Providers and outsourced medical billing companies can save a considerable amount of money by implementing ERAs and EFTs. The cost involved in recruiting new employees and training the current employees is saved. Huge savings in terms of paper costs, printing costs and mailing costs can be achieved. Therefore, the electronic payment posting method is not only time efficient, but also cost efficient.
Environmentally Friendly: The adoption of ERAs and EFTs has encouraged several healthcare billing companies and Providers to ‘Go Green’. Approximately, 2.5 billion pieces of paper can be saved by using the eco-friendly electronic payment process.
Several small healthcare providers and facilities are still using the traditional paper-based method of payment posting. Consequently the US based outsourced medical billing companies follow the same process. However, with the new legislation mandating the use of electronic payment method, there is an exigency for them to implement ERAs/EFTs as quickly as possible for these Providers and facilities. Doing so can consume a lot of productive time affecting the normal work and cash flow. Therefore, outsourcing medical billing functions to an offshore billing company like eCare India would be the right choice.
About e-Care India:
e-Care India is one of the renowned healthcare billing companies in India that promises the above mentioned benefits with total customer satisfaction. With 13 years of experience in the industry, e-Care’s 3 offshore healthcare billing delivery centers have been providing end-to-end medical claims billing services seamlessly to its clients. To know more about e-Care and its services, log on to www.ecareindia.com.
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