What does "assignment of benefits" mean?

The term "assignment of benefits" refers to an arrangement in which a patient authorizes their health insurance provider to make payments directly to a designated healthcare provider for services rendered. This means that instead of the patient having to pay the provider upfront and then seek reimbursement from the insurance company, the insurance company will reimburse the provider directly.

This simplifies the payment process for the patient, as they are not responsible for handling the insurance claims or managing the payment out of their own pocket. It also ensures that the healthcare provider receives payment for their services in a timely manner without having to wait for the patient to submit claims and pay afterward.

In contrast, the other options represent different scenarios that do not align with the concept of "assignment of benefits." For instance, if the provider bills the patient directly, this denotes a more traditional arrangement where the patient handles the financial transaction without direct involvement from the insurance company in the payment process. Similarly, if the insurance company retains all payment responsibilities, this suggests the provider is not involved in managing the payment at all, which falls outside the typical understanding of assigned benefits.