What does EOB stand for?

What does EOB stand for?

• A. End Of Benefit
• B. Explanation of Benefits
• C. Exemption Of Brand
• D. Electronic Order of Billing

Answer: (B)

EOB stands for Explanation of Benefits. This is the insurer’s statement that comes after a claim is processed, detailing how the claim was handled, including what the insurer paid, the allowed amount, any adjustments, and what you may owe out of pocket (such as deductible, coinsurance, or copay). It may also include reason codes for denials or adjustments and notes about covered services. This term is the standard way insurers communicate how a claim was paid or denied, making it distinct from a bill you receive from a provider. The other options don’t reflect the common terminology used in healthcare billing.

EOB stands for Explanation of Benefits. This is the insurer’s statement that comes after a claim is processed, detailing how the claim was handled, including what the insurer paid, the allowed amount, any adjustments, and what you may owe out of pocket (such as deductible, coinsurance, or copay). It may also include reason codes for denials or adjustments and notes about covered services. This term is the standard way insurers communicate how a claim was paid or denied, making it distinct from a bill you receive from a provider. The other options don’t reflect the common terminology used in healthcare billing.