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Medical Billing Glossary

Electronic Remittance Advice (ERA / 835)

The electronic remittance file a payer sends so payments and adjustments can be posted automatically to claims.

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Definition

An Electronic Remittance Advice (ERA), transmitted in the HIPAA 835 format, is the electronic file a payer sends to report how a batch of claims was paid. It carries the paid amounts, contractual adjustments, patient-responsibility amounts, and the reason and remark codes that explain each line.

Because it is structured data, an ERA lets a billing system auto-post payments against the right claims and flag exceptions, rather than keying each payment by hand from a paper remittance.

Why it matters for billing

ERA auto-posting is one of the biggest efficiency levers in the payment cycle. It speeds reconciliation, reduces posting errors, and turns denial reason codes into structured data a team can report on and work systematically.

Related terms

Terms that come up alongside Electronic Remittance Advice (ERA / 835) in the revenue cycle.

Billing that gets Electronic Remittance Advice (ERA / 835) right

EnVisionMD RCM handles eligibility, coding, documentation, denials and follow-up end to end — so the details behind terms like this one are managed for you, not left to chance.

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Electronic Remittance Advice (ERA / 835) — frequently asked questions

What is the 835?

It is the HIPAA electronic transaction standard for remittance advice — the technical format an ERA is delivered in.

Why use ERA instead of paper remittances?

ERAs let payments and adjustments post automatically to the matching claims, which is faster and more accurate than manual posting.

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