What does the acronym EOB stand for?

The acronym EOB stands for Explanation of Benefits. This document is issued by health insurance companies to policyholders after they receive medical care. The primary purpose of an EOB is to provide a detailed summary of the services rendered, how much the insurer will pay, and what the policyholder's financial responsibility is, such as copayments and deductibles.

An EOB outlines the specifics of a claim, including total charges for the services, the amount covered by the insurance, any adjustments made by the insurer, and balances that remain unpaid. It serves as both a receipt for services received and a way to ensure transparency regarding insurance coverage.

Understanding the role of an EOB is crucial for policyholders, as it helps them keep track of their healthcare expenditures, ensure billing accuracy, and comprehend their benefits and obligations under their health insurance plan.