Explanation of Benefits (EOB)
Definition - What does Explanation of Benefits (EOB) mean?
An explanation of benefits (EOB) is a statement issued by the insurance company to the insured. It shows the insurer's process in addressing a claim. It also details how much the company will pay for a particular claim, as well as the amount the insured will have to pay out of pocket.
Insuranceopedia explains Explanation of Benefits (EOB)
An explanation of benefits document is sent by mail. It describes the particular claim and the monetary amounts related to it. These figures are organized by categories, one of which describes how much the insurance company will pay, while another describes how much the insured will have to contribute in copayments or deductibles. It will also outline the instances in which the insurance company will not pay for the claim.