A question like what is an EOB may be easy for benefits professionals, human resource managers and medical practice personnel to answer.  But for many consumers, EOB is just another acronym.  EOB stands for Explanation of Benefit.

An EOB is sent out by a health, dental or vision insurer when a claim occurs.  Just as the name implies, an EOB explains the benefit that has been received.   Or does it?  Well the EOB explains the claim but requires some insight in to interpretation. 

Your EOB should be retained so that you have them to reference should any questions arise.  Think of your EOB as if it were an important financial statement.  Especially as health care costs are more now the consumers burden than during the last decade.  Deductibles are rising, out of pocket expenses are rising so you have more incentive to ensure that the handling of your money for health care expenses is done accurately.

There are many inconsistencies in the billing done by medical professionals and similarly inconsistencies by health insurers paying claims. 

Go to the following link to check out a sample EOB: http://www.aetna.com/provider/data/sample_provider_eob_numb.pdf

The link below explains what these codes stand for:

http://www.aetna.com/provider/data/final_prov_eob_field_key_med.pdf

EOB statements provide alot of information that you should be familiar with so that you can ensure that payments are being made properly.   The EOB is not a bill but an explanation of what was paid by the health insurer to the provider and what may not have been paid by the health insurer that is payable by the consumer.    This is where knowing and understanding your health plan is crucial so that you can dispute any charges you feel are not being handled correctly.