Remittance Advice and Explanation of Payment System

Provider Type

  • Hospitals

The remittance advice (RA) and explanation of payment (EOP) system communicates Health Net's claims resolution and outcomes to participating hospitals. This automated system consolidates claim payments to providers and recognizes and recovers any overpayment allowed under the provider's contract.

Hospitals receive a RA and EOP from Health Net when any of the following occurs:

  • Health Net pays, denies or contests a claim for services provided to a Health Net member
  • For Medicare employer groups withholds a payment to recover a previous overpayment. A RA and EOP overpayment detail notification is sent to the provider. This notification does not apply to individual Medicare or Special Needs Plan (SNP) providers.

A RA and EOP notification lists payments Health Net makes to hospitals claim by claim. It is composed of the following:

  • Subscriber identification number
  • Patient name
  • Patient account number - recorded on the CMS-1500 or UB-04
  • Health Net claim identification (ID) number
  • Service dates
  • Total billed
  • Contract adjustment
  • Amount paid - same as contract adjustment
  • Total claims payable
  • Total check amount - total claims payable

Hospitals must carefully review all RA and EOP notifications to verify payments and denials. Health Net does not send letters on initial claim denials. Questions regarding RA and EOP notifications must be directed to the Provider Services Center.