What is a remittance advice?

A remittance advice (RA), also called an explanation of payment, is the statement a payer sends with a payment listing each claim in the batch and what happened to it: paid amount, denied lines with reason codes, and adjustments. Electronic remittance uses the 835 format; brokers often deliver an equivalent report in their portal.

Why remittance advice matters for NEMT

The RA is the only place you find out that a trip was short-paid or denied. Providers who deposit checks without reconciling the RA line by line routinely leave 3 to 8 percent of revenue unclaimed. Post every RA against the trips on the manifest, work the denied lines within the appeal window, and watch for systematic underpayments, such as a broker paying the ambulatory rate on wheelchair trips.

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