Assignment of Benefits agreements are frequently requested by health care providers.
Health and dental insurance jargon can be difficult to interpret. A visit to a health care provider often means paperwork that is confusing and hard to decipher. The Assignment of Benefits form is one document that can easily be misunderstood by those who are unfamiliar with health care terminology; however, this form is frequently requested when health care services are provided. It is important to know what this agreement means and why it is routinely sought after by medical and dental care providers.
What is an Assignment of Benefits?
An Assignment of Benefits is an agreement between three parties -- the patient, the insurance company and the health care provider -- which allows the insurance company to transfer the patient's insurance benefits directly to the health care provider. This means that the patient gives the insurance company permission to send payment for services provided directly to the medical or dental care provider. In order for the agreement to be valid and legally binding, all three parties must give consent.
When is it used?
An Assignment of Benefits form is commonly used when a health care provider is due payment for services rendered to a patient that were covered under the patient's insurance. For instance, Sally breaks her arm and is admitted at ABC Hospital. ABC Hospital accepts Sally's insurance and renders treatment for Sally's broken arm at a cost of $2,000. Sally then signs an Assignment of Benefit form that allows her insurance company to send her benefits directly to ABC Hospital for a payment of $2,000.
Why is it necessary?
In most cases an Assignment of Benefits is not required, but is encouraged by health care providers. This agreement allows the health care provider to receive payment for their services directly from the insurance company, without having to trust that the patient will distribute the funds to the provider upon their receipt. In this way, the health care provider protects itself from falling victim to patients who decide that a check received from an insurance company, addressed to them, would be better spent elsewhere.
How do you obtain an Assignment of Benefits?
Most often your health care provider will have the forms available in their office. If not, contact your insurance company to request that a form be faxed or mailed to you. For reference purposes only, several sample Assignment of Benefits form can be found on the Internet.
Tags: health care, Assignment Benefits, care provider, health care provider, insurance company, Assignment Benefits form
