Understanding AOB in Medical Billing: Comprehensive Guide

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Understanding AOB in Medical Billing
Comprehensive Guide
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What is AOB in Medical Billing?

• Assignment of Benefits (AOB) is a contract in
  medical billing where a patient assigns their
  insurance benefits directly to the healthcare
  provider. This means the healthcare provider will
  handle all insurance claims and receive payments
  directly from the insurance company, rather than
  the patient being involved in this process.

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How Does AOB Work?

• Step-by-Step Process
• 1. Service Provided The patient receives medical
  treatment from a healthcare provider.
• 2. Signing the AOB The patient signs an AOB
  agreement, authorizing the healthcare provider to
  handle the insurance claim.
• 3. Submission to Insurer The healthcare provider
  submits the signed AOB to the insurance company.
• 4. Claim Review The insurance company reviews
  the claim and verifies the details.
• 5. Payment Once approved, the insurance company
  directly pays the healthcare provider.

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Example Scenario

• Consider getting your car repaired. Instead of
  paying out of pocket and seeking reimbursement
  from your insurer, you sign an AOB, and the
  repair shop deals directly with your insurance
  company for payment. Similarly, in healthcare,
  this process frees you from handling medical
  billing tasks, allowing you to focus on recovery.