Electronic Funds Transmission (EFT) / Electronic Remittance Advice (ERA)
Electronic Funds Transfer (EFT), also known as direct deposit, transfers payment directly to your bank account.
Electronic Remittance Advice (ERA) is an electronic explanation of the health insurance payment made, including information about the patient, services performed, name of provider, and any claims adjustments.
How to enroll your office for EFT/ERA
Providers can register and log into MagnaCare.com to enroll for EFT/ERA. Include a voided check from the bank account in which you wish to deposit electronic payments.
Basic requirements for EFT/ERA
A bank account in which to deposit the electronic funds.
Your clearinghouse/software vendor must be able to accept the ERA file in the 835 HIPAA standard format.
Rules for EFT/ERA
EFT is accompanied by ERA.
MagnaCare will issue ERA and EFT for claims that are administered by MagnaCare.
EFT and ERA are supported at the Provider TIN level.
All providers billing under that TIN will be enrolled in the EFT/ERA process.
EFT and ERA work together, with the ERA containing information about a specific healthcare claim and resulting EFT payment.
They increase efficiency by: