Which statement about the remittance advice is correct?

• A. The patient’s bill is a remittance advice.
• B. The remittance advice is a hospital budget document.
• C. Remittance advice detailing payments and adjustments from payers is a remittance document.
• D. The provider’s schedule is a remittance document.

Answer: (C)

Remittance advice is the payer’s notification that explains how a claim was paid, including the payment amount, any adjustments, write-offs, denials, and the reason codes for those adjustments. This document (often accompanying a payment or delivered electronically as an ERA) is used to post payments to the patient’s account and to reconcile the provider’s accounts receivable. It is not the patient’s bill or invoice, not an internal hospital budget document, and not a provider’s scheduling document. The statement that remittance advice details payments and adjustments from payers best reflects its purpose and contents.