What does the remittance advice document detail?

The remittance advice document is essential in the billing process as it provides detailed information on how a claim was processed by the payer. Specifically, it outlines how much of the claim was paid, along with any portions that were denied or adjusted. This is critical for medical billing offices to reconcile accounts accurately, understand the payer's decisions, and communicate with both patients and providers regarding the status of payments.

The details in a remittance advice help billing staff identify reasons for payment adjustments or denials, which in turn allows the practice to follow up if necessary. It serves as a formal communication from the payer, indicating the financial outcome of submitted claims and clarifying the insurer's payment policies.

The other options, while relevant to the overall billing process, do not accurately describe the primary purpose of a remittance advice.