What does the acronym "EOB" stand for?

The acronym "EOB" stands for "Explanation of Benefits." An EOB is a document that an insurance company sends to a policyholder after a medical claim has been processed. This document provides detailed information about the healthcare services that were billed, the amount that was covered by the insurance, any deductibles or co-payments that are required, and the total amount that the insured may be responsible for paying.

The EOB serves an important function as it helps policyholders understand how their insurance benefits are applied to their medical costs. It can detail services rendered, clarify the benefits that were used, and indicate whether a service was covered under the terms of the policy. This transparency allows patients to have a clear picture of their medical expenses and how their insurance works.

Understanding the EOB is essential for patients to manage their healthcare expenses effectively and to ensure that they are being billed correctly according to their insurance policy.