What is a Remittance Advice (RA)?

A Remittance Advice (RA) is an important document in the healthcare billing process. It serves as a report sent from third-party payers, such as insurance companies or government programs, to healthcare providers. The purpose of this report is to inform providers about the payment status of claims submitted for services rendered. It outlines details such as the amount billed, the amount paid, any adjustments made, and the reason for those adjustments.

The RA is crucial for providers to reconcile their accounts and to understand how much they are receiving for specific services. It includes essential information that aids in the management of billing and coding processes, enabling providers to address any discrepancies or unusual adjustments in payments. This feedback mechanism supports efficient financial management within healthcare practices.