Final answer:
EFT payments are not transmitted directly from the insurance carrier's financial institution to the medical provider's financial institution account. The funds are transferred through the ACH network.
Step-by-step explanation:
The statement is false. EFT payments, which stands for Electronic Funds Transfer, are a secure and efficient way to transfer money electronically between bank accounts. In the context of insurance and medical providers, EFT payments are typically transmitted from the insurance carrier's financial institution to the medical provider's financial institution through the Automated Clearing House (ACH) network.
This means that the insurance carrier's financial institution initiates the payment and sends it to the medical provider's financial institution via the ACH network. The payment is then deposited into the medical provider's account, providing a direct transfer of funds.
However, it is important to note that the funds are transferred between financial institutions, not directly from the insurance carrier's financial institution to the medical provider's account. The ACH network serves as the intermediary for the transfer of funds.