What does the 'EOB' acronym stand for in healthcare billing?

In healthcare billing, the acronym 'EOB' stands for "Explanation of Benefits." This document is provided by health insurance companies to explain what medical treatments and services were covered under a patient's insurance plan. It outlines the amount billed by the healthcare provider, how much the insurance paid, any adjustments made, and what portion of the costs remains the responsibility of the patient.

The EOB serves an important role in the transparency of medical billing and health insurance, helping patients understand their coverage and financial responsibilities. It is an essential tool for both patients and healthcare providers, as it aids in clarifying what benefits have been utilized and what out-of-pocket costs may be expected following medical services. Understanding EOBs is crucial for Patient Service Representatives, as they often need to explain these documents to patients and help them navigate their benefits, payment structures, and any potential discrepancies in billing.