CPB (Certified Professional Biller) Certification Practice Exam

What does ERA stand for in the context of billing and coding?

1. Employee Retirements income security Act of 1974

2. Electronic Remittance Advice

3. Employee Retirements Income and Security Advisory

4. Extensive Reimbursement Assessment

The correct answer is: Electronic Remittance Advice

In the context of billing and coding, ERA stands for Electronic Remittance Advice. Electronic Remittance Advice is a notice of payment sent to providers in an electronic format, detailing the outcome of claims processing after a claim has been submitted for processing. This electronic information allows providers to reconcile their account receivables more efficiently. Option A (Employee Retirements income security Act of 1974) refers to a different legal act related to employee benefits. Option C (Employee Retirements Income and Security Advisory) is not a common acronym in the billing and coding field. Option D (Extensive Reimbursement Assessment) does not accurately represent the common term ERA in billing and coding.