The Assignment Benefits Of Medical Billing

The health care industry following the insurance plan makes payments on behalf of patients. The insurance plan helps patients, who are unable to get medical service, to go through complete management.  When a patient meets a doctor for consultation, he must first ensure that an insurance company will bear the responsibility of payment for all the benefits he will receive. The assignment of benefits comes in here.

So, it is like an agreement that allows the shift of the health insurance claims benefits of the policy from the patient to the health care provider. The agreement is signed by the patient to request the insurance company for the amount payable to the health care provider for the health benefits of the insurer.  The insurance payer makes the payment to the hospital or doctor at the patients’ request.

Let’s understand what the assignment of benefits is.  It is generally transferred by designing an officially authorized document which varies with the variations of medical offices. This document is called the ‘Assignment of Benefits’ form. After signing the form, the patient authorizes the insurance company to release all the written information required by the hospital for settlement. This also suggests that any medical billing and collection company hired by the hospital is free to use the related information for billing purposes.

Besides, the patient agrees to appoint anyone from the hospital as a representative on behalf of the patients to request payment from the insurance payer. That is, soon after the documents are signed by the patient, the insurance company or its representative directly come in a parallel line with no contact with the patients unless asked to do so.

The assignment of benefits activates only when the insurance company fruitfully processed a claim with the insurance company. The acceptance or rejection of AOB depends on the patient’s contract. Therefore, all three parties— patient, health care provider, and the insurance company must stay updated with the State Law for Review, the patient’s health benefit plan thoroughly. This will help to save time and useless official procedure if the probability of rejecting the AOB seems to be high.

The assignment of benefits, therefore, plays an important role in medical billing by setting up direct contact with the health care insurance payer. It increases the chances of settlement and speeds up the procedure without any additional contact with the patient.