What is an "explanation of benefits" (EOB)?

The explanation of benefits (EOB) is a critical document provided by health insurance companies. It details the treatments that were covered during a healthcare service and clarifies how much the insurer will pay versus how much the patient is responsible for. This document helps patients understand their benefits, including the costs that were billed, the allowable charges for those services, and any adjustments made by the insurance company.

In contrast, while a summary of healthcare costs billed can provide details about expenses, it does not necessarily explain the payment breakdown or coverage specifics. A notification of a claim denial, on the other hand, focuses on claims that were not approved and does not provide information about covered services. Lastly, a list of in-network healthcare providers identifies accessible providers within the insurance plan but does not involve billing or payment details related to specific treatments or services. Each of these alternatives serves different purposes in the context of healthcare billing and communication, but the EOB specifically outlines the coverage and payment details essential for both providers and patients.