The Explanation of Benefits (EOB) or Electronic Remittance Advice (ERA) is an electronic file that provides claim payment information much like your EOB does on paper. You get 835 files through your clearinghouse or directly from a payer. You then download these into your billing software.

EDI transactions (charges) are generated from the practice management system (PMS) or hospital information system (HIS) and then are routed to a clearinghouse. The EOB returned (835) from these transactions is loaded back into your Practice Management Software /computer system from the clearinghouse for auto-posting.

Your Practice Management Software should be able to submit single or batch transactions for multiple patients and payers, eliminating the need for manual data entry, phone calls, and numerous logins for payer websites. Your Practice Management Software should also allow the 835 to be downloaded in the software and allow these transactions (payments,adjustments, and corrections) to auto download into each patient transaction, eliminating the need for manual entry, and checking for accuracy.

According to the 2020 CAQH Index, the average cost to conduct transactions manually is consistently higher than the cost of electronic transactions for care providers and health plans. 835 files reduce a lot of manual processing and human error and save time.

The benefits are many:

Time-Saving

The most significant advantage is saving time. You will save many hours by eliminating manual keying and hand figuring each payment detail using the 835 files. You will have an opportunity to look at each download before accepting, but you will not be keying each claim in as you would in a manual system. Think of the time you spend on one of your larger EOBs hand-posting all the payments and write-offs.

Reduce or eliminate posting errors.

We all know that long hours posting EOBs can be tiring and sometimes fraught with errors. By downloading the 835 files and reviewing them (instead of posting each line), you are more alert as to any errors and any follow-up you may need to do.

Payment/Follow-up Cycle

Downloading the 835 file(s) will allow you a quicker payment/follow-up cycle. Receiving your payment electronically will allow anyone doing the collections to devote more time to fix wrongly or unpaid claims. Your collection person/department will be able to see the claims that need attention sooner vs waiting for the posting person to have everything entered. Spending this time fixing outstanding or wrongly paid claims immediately will reduce your payment cycle and allow your company to pay more attention to any amount owed to the clinic much quicker. So instead of spending hours posting the payments, adjustments, and copayments, you can concentrate your time on collections. This is especially true for small practices whose biller is the collection specialist and receptionist all in one.

Apollo offers 835 inputs so that you can take full advantage of receivable management.

Managing your practice is a gratifying and fulfilling experience, especially if you’ve worked many years to make that dream a reality. Apollo Practice Management puts the fundamentals of physical therapy billing at your fingertips and acts as a stepping stone from manual billing to automated billing. Apollo handles tedious tasks like posting 835 file(s), so you can focus on collecting revenue.