Why is it Important to Provide an EOB for Your Employees? 

An explanation of benefits (EOB) is a detailed statement provided by insurance companies that outlines the medical services received, the amount billed, the amount covered by insurance and the amount the patient is responsible for paying.

Understanding this document can significantly impact employees’ financial well-being and their overall satisfaction with their health care benefits.

Importance of an EOB

Helping employees understand the Explanation of Benefits (EOB) is crucial for the following reasons:

• Financial clarity and transparency—One of the primary reasons for explaining EOBs is to provide financial clarity. Employees often find medical billing confusing, and an EOB can help demystify the charges associated with their healthcare. Employees can better manage their finances and avoid unexpected expenses by understanding what their insurance covers and what they owe. This transparency fosters trust between the employer and employees, as it demonstrates a commitment to their financial health.

• Empowerment and informed decisions—Employees who understand their EOBs are empowered to make more informed decisions about their health care. They can identify any discrepancies or errors in billing, which can be corrected promptly. This knowledge also enables them to choose health care providers and services that offer the best value, ultimately leading to more cost-effective health care choices.

• Reducing stress and anxiety—Medical expenses can be a significant source of stress for employees. By explaining EOBs, employers can alleviate some of this anxiety. When employees know how to read and interpret their EOBs, they feel more in control of their healthcare expenses. This reduction in stress can lead to improved mental health and productivity in the workplace.

• Enhancing benefits utilization—Employees who understand their EOBs are more likely to utilize their healthcare benefits effectively. They can take full advantage of preventive services, screenings and other covered benefits, leading to better overall health outcomes. This proactive approach to health care can reduce absenteeism and increase workplace productivity.

Learn More

Contact Swift Kennedy & Associates, Inc. to review your insurance portfolio.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.