First, let’s look at how to know what you owe for your health care services.
After you’ve seen a doctor or provider, you file a claim with your health insurance company (often the provider will file this for you). Filing a claim, means you’re asking your insurance company to process or handle the bill. As part of this process, your health insurance company sends you an explanation of benefits also called an EOB.
An EOB isn’t a bill. It’s a summary of your health insurance coverage, claims and benefits.
Why is an EOB important?
Your EOB can help you track your health care spending and medical claims history.
Here’s what you need to know:
- Compare your health care and dental bills with your EOB to make sure the services and charges listed are correct.
- If a charge doesn’t look right call your doctor or insurance customer service to ask why.
- “Allowed Amount” is the total an in-network doctor or provider is allowed to bill you. It’s a discounted rate your insurance has negotiated or agreed on with doctors and hospitals in their network. You save money when you choose in-network care.
- The part of the bill you must pay might be called something like, “Amount Your Provider May Bill You,” or “What you may owe.” It includes any copays.
- Keep all your EOBs and health care bills for future reference or until your plan year ends (you may need these for your tax records).
- Paying insurance bills can mean paying the medical bills that insurance doesn’t cover or it can mean paying a monthly premium to have health insurance coverage.
- Paying insurance bills can mean paying the medical bills that insurance doesn’t cover or it can mean paying a monthly premium to have health insurance coverage.
