PayPilot enables comprehensive electronic payment and statement functionality. As disbursements are issued electronically, it is beneficial and typically matter-of-fact to send the supplemental payment explanation (statement) to the payee electronically also.
The supplemental payment explanation is typically called an explanation of payment (EOP). For insurance claim payments, this payment explanation can also be called an explanation of benefit (EOB). Electronically transmitted payment explanations are called ERADs.
PayPilot offers the ability to send the payment statements as ERADs.
For insurance claim payments, the paper remittance advice is a payment explanation providing details about the providers’ claim payments. An electronic remittance advice is the electronic version of a payment explanation.
This ERAD provides details about providers' claims payment, and if the claims are denied, it would then contain the required explanations. ERADs are provided by plans to Providers. The industry standard for sending ERAD data for health care payments is the HIPAA X12N 835 standard.