Empowering Policyholders: Understanding Insurance Explanations of Benefits
An insurance explanation of benefits (EOB) is a detailed statement that outlines the services covered, charges incurred, and benefits paid by an insurance company for a specific medical claim. It provides a clear breakdown of healthcare expenses, helping policyholders understand their coverage and out-of-pocket costs. For instance, if a patient undergoes a $1,000 medical procedure and their insurance covers 80%, the EOB will show the covered amount of $800, the patient’s responsibility of $200, and any deductibles or co-payments involved.