CPB Certified Professional Biller Certification Practice Exam

What does ERA stand for in billing terminology?

1. Electronic Remittance Announcement

2. Electronic Remittance Advice

3. Electronic Reimbursement Agreement

4. Electronic Revenue Assessment

The correct answer is: Electronic Remittance Advice

The term ERA stands for Electronic Remittance Advice in billing terminology. An Electronic Remittance Advice is a document that explains the payment made by an insurance company to a healthcare provider. It provides details including the amount paid, the services covered, and any adjustments or denials related to the claims submitted. This document is crucial for billing professionals as it helps them reconcile payments received with the claims that have been filed. Understanding what an ERA contains and how to interpret it is essential for professionals in medical billing and coding, ensuring timely and accurate financial management. The other options, while they contain terms related to billing, do not accurately define what ERA refers to in this context. For instance, an Electronic Remittance Announcement, Electronic Reimbursement Agreement, and Electronic Revenue Assessment do not reflect the standardized terminology used in the healthcare billing industry regarding payment documentation. Thus, recognizing that ERA specifically denotes Electronic Remittance Advice reinforces the importance of clarity in billing communications.