What is the purpose of a remittance advice?

The purpose of a remittance advice is to report payment from the payer to the provider. This document serves as an explanation of benefits and outlines how much was billed, the amount paid, and any adjustments that have been made to the claim. It provides essential information that helps providers reconcile their accounts and understand the payment details for each service rendered. By receiving the remittance advice, providers can identify any discrepancies between billed amounts and paid amounts, allowing them to follow up with payers if necessary.

The other options address different functions that do not align with the specific role of a remittance advice. Billing the patient for services rendered is a separate process, as is issuing a refund to the patient or summarizing services needed. Each of those tasks has its own unique documentation and procedures associated with them and is not encompassed within the scope of a remittance advice.