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What is the difference between RA and EOB?

Aug 13

Explanation of Benefits (EOB) and Remittance Advice (RA) are medical billing statements, and both statements involve the medical claims for every member in the medical billing process. Explanation of Benefits (EOB) and Remittance Advice (RA) are used in adjunction claims by the medical providers and payers for the claim processing. The information in the EOB and RA transaction documents are identical, but the appearance or paper format can be distinct. Moreover, they do not take care of a single claim but cover all the medical claims. It is a highly complex task because it is not the same group, but service dates and patient claims groups are illogical and nonconsecutive. The medical claims are assigned alphanumerically with the name of provider and patient and internally set numerically with the control number or serial number. It records the recipient information, and an Explanation of Benefits statement is also mailed to the patients. Remittance Advice (RA) is the printed document you can obtain from the offices that can tell you about the medical claim processing and payments, such as Medical Assistance programs. The best medical billing company can assist you with the RA and EOB in medical billing because they know the tactics. 

U Control Billing is one of the most outstanding medical billing companies, and their proficient medical billers and coders deal with complex medical billing services. They can deal with every kind of medical billing, either easy or difficult, like dermatology medical billing or cardiovascular billing. 

What are four common types of Explanation of Benefits (EOB) and Remittance Advice (RA) information?

There are four common types of Explanation of Benefits (EOB) and Remittance Advice (RA) information in various locations, which are as follows:

  • Claim information
  • Header information
  • Glossary (codes written on the document with the index of definitions)
  • Total payment

What are the criteria for reading the Remittance Advice (RA) document?

  • Provider number, which consists of six digits. 
  • The RA published the date and check-in on the same date.
  • The OMAP assigns the unique code on the document.
  • The chronological order of the Remittance pages.
  • The title number of the clients that identify each member.
  • After completion, each patient has the reference number of claims processed by the OMAP. 
  • The date of service on the claim form of provided services.
  • If the patient's account number is present on the claim form, it will be placed on this blank space of the medical claim form. 
  • The type of medical procedures, services and medical codes on the claim form. 
  • The billing and paid amounts should be on the claim form along with the procedural codes. 
  • The billed services are payments paid by other sources such as Medicare, private insurance and patient liabilities. 
  • The co-payment, deductibles and applied amount.
  •  The payment that OMAP has spent.
  •  These digits are compared to the documented messages in the bottom section of Remittance Advice. 
  •  On this Remittance Advice, the totals of third-party liability credits, OMAP amounts and the billed amounts are present.
  • This part divides the information into two parts. One is RA's current payments of the year with the dates and the second with other charges.


 Explanation of Benefits is the computer messages about the claim processing and the further information that requires the claim processing if the amount or payment is rejected. They are also known as the Claim message codes. 

What are the criteria for reading the Explanation of Benefits (EOB)?

EOB is the healthcare insurance strategy document in which all payments are mentioned for the provided services such as tools, instruments, and products. When the provider pays all the dues and submits a medical claim for the provided services, an explanation of benefits statement is generated. 

EOB is not a bill but a statement, and it is essentially a proclamation of your clinical benefits and subtleties on how you and your arrangement will share costs. You won't utilize this to take care of any remaining bills. 

Recollect that Explanation Of Benefits expresses the expenses related to your medical consideration, yet they are not bills. These papers are genuinely standard among insurance agencies. The following are the pages description:

Number 1 page sums up the accompanying:

  • Your patient subtleties
  • The clinical benefits you got and from who
  • Payment charged: Cost of delivered medical services. 
  • Savings: Any cash you saved by getting to clinical items from inside your arrangement's organization of suppliers
  • The payment paid by your health care coverage plan
  • The amount that is not involved: What costs your well-being plan didn't cover
  • The amount that might have been paid from spending accounts, if the material
  • Any remaining sum you are liable for paying.

Number 2 page contains a glossary of the terms and definitions remembered for your EOB, as well as guidelines for how you can pursue a medical claim which is fundamental.

Number 3 page gives more unambiguous insights concerning the expense of the consideration you got. 

For Example Health Reimbursement Account (HRA)

Contingent upon your wellbeing plan, page 3 may likewise reflect which piece of your clinical costs count toward your yearly deductible.

Extra data may incorporate language help guidelines and additional insights regarding documenting and allure in your home state. 

Why does the health insurance agency send you the Explanation of Benefits (EOB) statement?

It has the following purposes:

  • The total cost that the patient receives for the medical care services.
  • The saving amount is preserved in the hospital visits. 
  • The due bills and medical expenses (out-of-pocket) are unpaid.

How do Explanations of Benefits function?

A medical services supplier will charge your insurance agency after you've accepted your consideration, and you will get an EOB. Afterward, you might get a different bill for the unpaid sum. This bill will remember guidelines for guiding the installment to either a medical care supplier or your health care coverage organization.

EOBs are an instrument for showing you the worth of your health care coverage plan. You see the expense of the administrations you got and the investment funds your arrangement assisted you with accomplishing. EOBs likewise assist you with measuring how much cash you might have left in accounts connected with your agreement. EOBs show you how close you might meet your yearly deductible for specific plans. When your deductible is completed, your net collection starts to assist you with paying for administrations.

Wrap up!

Suppose you are looking for an excellent medical billing company with the best medical billers and coders who can help you with the billing statements. They do the perfect work with consistency, accuracy and clarity. You can contact U Control Billing for the best outsourced medical billing services. They are highly proficient and work smartly according to the client’s satisfaction. 

You can visit their website or ask their customer support 24/7. Feel free to contact them.