Is an EOB considered a bill?

An Explanation of why an Explanation of Benefits (EOB) is not classified as a bill is essential for understanding health insurance communication. An EOB is a document sent by a health insurance company to inform the insured about the processing of a claim. It provides detailed information regarding what services were billed to the insurance and what the insured's financial responsibility is, including any amounts not covered by insurance and what has been applied to any deductibles or out-of-pocket maximums.

Importantly, while an EOB indicates amounts that the insured may owe, it does not demand payment nor does it serve as a formal request for payment. Instead, it is primarily informative, highlighting the insurance coverage details and assisting the insured in understanding their healthcare expenses. Thus, it is characterized as a summary rather than an invoice or bill.

This distinction helps individuals navigate their healthcare costs effectively; understanding that an EOB is for informational purposes can prevent confusion over payments and due amounts.