Baylake Bank eNews. Member FDIC

Changes in Healthcare – How will they affect your business?

The Patient Protection and Affordable Care Act (PPACA) which was passed in 2010 included a mandate which required all Medicare providers to accept payments via electronic funds transfer (EFT). This means that payments that were previously received by paper check will now be sent electronically through the ACH (Automated Clearing House) network. This switch from paper to electronic transactions began on Sept. 20, 2013, and is to be completed by Jan 1, 2014.

These types of payments contain additional information in the addenda record which is attached to the ACH transaction. EDI, or Electronic Data Interchange, is the information contained in addenda records of electronic payments received through the ACH network. This helps to identify the payer and invoice number as well as medical claim reimbursement information related to each electronic payment.

EDI has numerous benefits including:

o Improved funds availability
o Reduced human handling of forms and paperwork
o Simplified matching of invoices
o Eliminated postage costs
o Decreased administrative fees

Any business which receives this type of healthcare reimbursement will need to be able to match the ACH payment to the corresponding remittance advice. The Electronic Remittance Advice (ERA) contains the information related to the claims reimbursement as well as what is known as the Reassociation Trace Number. The Reassociation Trace Number is contained in the EDI information of the payment and allows the Provider to match the payment to the remittance advice. For more information on the benefits of ACH for healthcare providers, visit the NACHA (National Automated Clearing House Association) website at

EDI is beneficial to all businesses who have accounts receivables, not just those in the healthcare field. It can help you to simplify the process of matching electronic payments to invoices.

Contact Baylake Bank’s Treasury Management Department at 1-800-580-4440 or visit today to find out how you can get the information you need to save time and money and help you ‘Build the Good Life.’



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