An explanation of benefits is a statement from a health plan showing the services billed, the allowed amount, what the plan paid, any adjustments and what the patient owes. Providers receive EOBs (or ERAs); patients receive their own version.
Related terms
- ERA (835)
- The electronic remittance advice: the payer's electronic explanation of payment.
- Allowed amount
- The maximum a payer will pay for a covered service under its contract or fee schedule.
- Payment posting
- Recording insurance and patient payments and adjustments against claims.