What is the purpose of an Explanation of Benefits (EOB)?

The purpose of an Explanation of Benefits (EOB) is to inform the insured about the services billed to their insurance, the payments made by the insurer, and the financial responsibility that remains for the insured. This document serves as a detailed account, breaking down each charge associated with a healthcare service, clarifying what portion the insurer has covered, and what amount the insured is required to pay out-of-pocket.

An EOB typically includes information such as the date of service, the type of services provided, and the total amount billed. It also clarifies any deductibles or copayments that may have been applied. This transparency helps insured individuals understand their healthcare costs and what their insurance plan covers, thereby aiding in better financial planning for medical expenses.