CPB Certified Professional Biller Certification Practice Exam

What does EOB stand for in the context of health insurance?

1. End of Balance

2. Electronic Operations Billing

3. Explanation of Benefits

4. Emergency Operations Bureau

The correct answer is: Explanation of Benefits

In the context of health insurance, EOB stands for Explanation of Benefits. This document is crucial for both healthcare providers and patients as it outlines the details of a claim that has been processed by an insurance company. An EOB provides information such as the services that were billed, the amount that the insurance plan has authorized, the amount that is covered, and the patient's financial responsibility such as deductibles, copayments, or coinsurance. Understanding this document is essential for patients to comprehend how their claims are handled and the financial implications of their healthcare services. It also serves as a tool for providers to review the reimbursement they can expect for the services they rendered, ensuring transparency in the billing process. Therefore, recognizing EOB as Explanation of Benefits is fundamental in navigating the complexities of health insurance.