What is an explanation of benefits?



What is explanation of benefits?

The financial term of the day is: "explanation of benefits."

When you see your doctor or go to the hospital, your health insurance probably won't cover everything. There are deductibles, copayments, coinsurance, exclusions, and on and on. Your insurer will send you an explanation of benefits, or EOB, that lays out the costs of your care and details the charges that the health plan has paid and any remaining amount that you'll be expected to pay out of your own pocket.

Medical bills are complicated. Your health insurer's explanation of benefits, or EOB, seeks to provide answers to a patient's basic billing questions, such as, "How much was covered?" and "How much will I have to pay?"

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