08/28/2026
If you are a therapist taking insurance, you need to know these three terms.
ERA. EFT. EOB.
They sound similar. They are not the same. And confusing them is quietly costing you clarity over your own money.
Here is the simple breakdown:
EFT is the deposit. It is the money that hits your bank account from the insurance payer. It tells you money came in. That is it.
ERA is the provider side explanation. It tells you what was billed, what was allowed, what was paid, what was adjusted, what was denied, and what the client still owes. This is the document that actually tells you what the payer did with your claim.
EOB is the client side explanation. It is what your client receives from their insurance company showing what was covered and what they may owe you.
Here is why this matters.
You cannot manage your billing by looking at your bank account alone.
A deposit does not tell you which claims it covered.
It does not tell you if anything was denied.
It does not tell you if the client has a balance.
It does not tell you if something was applied to a deductible.
When you know how to read all three together, your billing stops being a mystery and starts being something you can actually manage.
Save this post. You will see these terms again and again.
And if you want help understanding your billing without figuring it out alone, book a free call with Lumvia. Link in bio.
