What does a remittance advice (RA) document provide?

A remittance advice (RA) document is crucial in the revenue cycle as it provides a detailed breakdown of payments made by insurers to healthcare providers. Specifically, it outlines the amount paid, any adjustments that have been made to the claim, and descriptions of any denied claims. This information is vital for providers as it helps them understand what has been reimbursed and why certain amounts may have been adjusted or denied.

The RA serves as a key financial tool, making it easier for healthcare organizations to reconcile their accounts, manage cash flow, and follow up on denied or underpaid claims. Understanding this document is essential for effective billing practices and ensuring that healthcare providers are adequately compensated for their services.

Other options, such as details on patient appointments or patient feedback, do not pertain to the financial transactions that a remittance advice addresses, while information on new payment plans is generally not included in an RA, focusing instead on the specifics of completed claims and payments.