The Functioning of an Explanation of the Benefits
An Explanation of Benefits (EOB) may assist you in preventing overpayment for medical services. Examine an EOB as soon as it comes in the mail, and then compare it to the amounts shown on your invoices to confirm that you are paying the appropriate sum. If you discover a mistake on a bill that was sent to you by a doctor or another provider, you should contact your insurance carrier for assistance in resolving the problem.
What should you do if you are unable to decipher the explanation for why you have a financial obligation or if you are just having problems comprehending the EOB? You may also contact your healthcare practitioner or your insurance company and explain the situation to them over the phone.
If you have a financial obligation, you should inquire with your insurance provider about whether or not the payment may be used toward meeting your out-of-pocket deductible. In the event that you have questions about the prices of certain services, you may inquire with the provider about the specific services and the prices associated with each one. If you believe that you have been charged in error, you should request that the provider go through the whole EOB with you, line by line, to assist you in determining whether or not a mistake has been made.
It is possible for insurance companies to make coding mistakes while they are processing EOBs, just as it is possible for healthcare providers to make billing errors. Call your insurance provider and ask for an explanation if there is anything on your explanation of benefits form (EOB) that you do not understand or if you believe your insurance policy covers an item that was not paid for.
The Meaning of an Explanation of Benefits, Along with Some Examples
After submitting a claim for health insurance, you will get a statement that provides an explanation of the benefits. It describes the service in full, together with the fees charged by the provider, the portion of the costs that are covered by insurance, and the balance that is still owed. When they have finished providing services to you, your physicians, dentists, and any other medical professionals will send in claims to be paid by your insurance company. This is the method through which they are compensated. In return, the insurance provider will provide you an EOB that details the claims that were made, the amount that is being covered by insurance, and the amount that you are responsible for paying.
The provider will be responsible for collecting from the patient any percentage of the medical cost that is not paid for by the insurance company, such as a deductible or a co-payment. These fees should be paid to the supplier on a one-on-one basis.
The exact format and structure of the EOB will vary from insurance company to insurance company, however all basic EOBs will include the following information:
- A condensed version of your account that includes the essential identifying information and claim number.
- The particulars of the claim, such as the date and the services that were rendered, are included.
- The accounting, which contains the amount that your insurance is covering, the price of the service, and the difference between the two amounts. (This is sometimes referred to as the “adjustment,” “amount authorized,” or “contracted agreement,” depending on the context.)
- A brief overview of your copays, deductible, and coinsurance, which is completely optional.
Samples of explanations of benefits (EOBs) may be found on the websites of many insurance companies, including Blue Cross Blue Shield. You may go through them to get a sense of what an EOB looks like and how the information is organized so that you can better understand it.
How to Receive a Detailed Account of Your Benefits
Most of the time, the explanation of benefits statement will be sent to you. In the majority of instances, it looks very much like a medical bill.
You may now get online access to your account from the majority of insurance carriers. This online access may include digital access to EOBs. Check with your insurance provider about how to acquire online access to your account if you do not already have it and if you do not know how to do so.
After creating an online account, you should investigate the digital access alternatives provided by your insurer as soon as possible. The majority of them will provide you the option to sign up for email notifications once EOBs are made accessible. This could make it possible for you to examine them right away, sparing you the inconvenience of having to wait for them to appear in your mailbox.