You know that document that comes from your health insurance company that you almost always think is a bill at first? Yep, that one - The Explanation of Benefits or EOB. You're not alone! Many people confuse it with a bill which is why SOMEWHERE on the EOB it should say boldly THIS IS NOT A BILL.
It's all about claims. Whenever you use your health plan for services or goods from a healthcare provider, a claim is submitted on your behalf. (If you go out-of-network you may have to file your own claim. That's a whole different article.) When a claim is submitted, your health insurance company generates an EOB. It shows how your benefits cover the cost of the service or goods from your provider and what you are LIKELY to owe.
On the EOB, you will see:
If you ever have questions about an EOB or a bill, call your health insurance company! It's always good to make sure you completely understand what your services were and what you're being billed for before paying. Your health insurance company can help.
Special Note: If you received a reimbursement from your health insurance company that was intended for a provider, it is your responsibility to pay the provider. If you're unsure about any money you've received, call your health insurance company.
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The information and materials herein are provided for general information purposes only and are not intended to constitute legal or other advice or opinions on any specific matters and are not intended to replace the advice of a qualified attorney, plan provider or other professional advisor. This information has been taken from sources believed to be reliable, but there is no guarantee as to its accuracy. In accordance with IRS Circular 230, this communication is not intended or written to be used, and cannot be used as or considered a ‘covered opinion’ or other written tax advice and should not be relied upon for any purpose other than its intended purpose