Explanation of Benefits (EOB)

An Explanation of Benefits (EOB) is a document sent by a health insurance company to a policyholder after a healthcare service has been provided or a claim has been processed. The EOB outlines the costs incurred for the service, the amount covered by the insurance company, any payments made by the policyholder, and any remaining balance owed to the healthcare provider. It serves as a summary of the financial aspects of the healthcare transaction and helps individuals understand how their insurance benefits are applied.