What is a remittance, and how is it different from an EOB?

A remittance is the payer’s answer sheet. It says what they paid, what was written off, and what the patient owes.

You will hear three words for closely related things.

ERA stands for electronic remittance advice. It is the remittance arriving as a file instead of paper, and it is what lands automatically on your Remittances page.

835 is the technical name for that file. The X12 835 is the standard format every payer uses to send an ERA. When somebody says “the 835 came in,” they mean the electronic remittance.

EOB stands for explanation of benefits. Historically it is the paper version of the same story, and the copy the patient receives is usually called an EOB. Same information, different audience and format.

One remittance can cover many claims. It carries a check or a deposit amount at the top, then one section per claim showing billed, paid, write-off and patient responsibility, then any adjustments made at the whole-check level. The allowed amount is not a line on the file: it is what is left once the contractual write-off comes off the billed amount.

Those check-level adjustments are where confusing money hides. See Why is this check short?.

Some payers will pay you without ever sending the remittance, until the practice is enrolled to receive them. See What is a payer enrollment, and do I need one for every payer?.