There are many terms in the world of health insurance that can be hard for patients to understand. If you’re confused, you’re not alone. This guide breaks down some of the most common terms in healthcare billing.
The maximum amount on which payment is based for covered health care services.
Also known as: eligible expense, payment allowance, negotiated rate, allowable charge
See “Charged Amount”
For example, if the provider’s charge is $100 and the allowed amount is $70, the provider may bill you for the remaining $30. A
You generally pay coinsurance plus any deductibles you owe. For example, if the or s allowed amount for an office visit is $100 and you’ve met your deductible, your coinsurance payment of 20% would be $20. The health insurance or plan pays the rest of the allowed amount.
A fixed amount (for example, $15) you pay for a covered health care service, usually when you receive the service.
The amount can vary by the type of covered health care service.
For example, if your deductible is $1000, your plan won’t pay anything until you’ve met your $1000 deductible for covered health care services subject to the deductible. The deductible may not apply to all services.
EOB or Explanation of Benefits
A list that you get after you’ve received a medical service, drug or item.
This list tells you the full price of the service, drug or item that you received. It also tells you how much you may need to pay for it.
Relating to an out-of-network provider or health care services provided outside of your.
Also known as: out-of-area, out-of-plan
The most you could pay during a coverage period (usually one year) for your share of the costs of covered services.
Some health insurance or plans don’t count all of your copayments, deductibles,payments, out-of-network payments or other expenses toward this limit.
Also known as: out-of-pocket maximum, out-of-pocket threshold.
The amount of money the patient must pay for health care services.
The organization that pays for the costs of health care services. A payer may be a private insurance company, the government, or an employer’s self-funded plan.
You and/or your employer usually pay it monthly, quarterly or yearly.
A , including an M.D. (Medical Doctor) or D.O. (Doctor of Osteopathic Medicine), other health care professional, hospital, or other health care facility licensed, certified or accredited as required by state law.