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The 835 transaction is the HIPAA-compliant format that allows for receiving third party reimbursement payments and adjustment information in an electronic format. The full name is the Health Care Payment Remittance Advice.
An 837 file is an electronic file that contains patient claim information. This file is submitted to an insurance company or to a clearinghouse instead of printing and mailing a paper claim. The data in an 837 file is called a Transaction Set.
ERA/835 Files The Electronic Remittance Advice (ERA), or 835, is the electronic transaction that provides claim payment information. These files are used by practices, facilities, and billing companies to auto-post claim payments into their systems.
Since the 835 format is for electronic transfers only, you cannot easily read the data. Your staff may view and print the information in an ERA using special translator software like the Medicare PC-Print translator software program. The PC-based PC-Print translator program is an interactive program.
Claim payments with an 835 status code of 22 (Reversal of Previous Payment) will be posted unless the option not to post them is turned on.

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835 files contain such information as what charges were paid/reduced/denied, deductable/co-insurance/co-pay amounts, bundling and splitting of claims, and how the payment was made.
An 835 is also known as Electronic Remittance Advice (ERA). It is the electronic transaction that provides claim payment information and documents the EFT (electronic funds transfer). An 835 is sent from insurers to the healthcare provider.
The EDI 835 Claim Payment/Advice is used to make and detail payments to healthcare providers and/or provide Explanations of Benefits (EOBs). Providers or third-party services send the EDI 837 Healthcare Claim to payers. The optional EDI 275 Additional Patient Information (Unsolicited) may also be sent with attachments.

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