If you’ve ever received a medical bill followed by a statement from your insurance company, you’ve likely seen an Explanation of Benefits (EOB). While it may look like a bill, it’s not—it’s a detailed summary of how your health insurance processed a claim.

Let’s break down what an EOB is, what it includes, and how to read it.

What’s the Purpose of an EOB?

An EOB is a statement from your insurance company explaining:

• What medical services were billed

• How much your provider charged

• What your insurance covered

• What you may still owe

It’s a communication tool—not a request for payment.

Key Sections of an EOB

Here’s what you’ll typically find on your EOB:

• Patient Name – Who received the services.

• Provider – The doctor, facility, or service provider.

• Service Description – A summary of what care was provided.

• Amount Billed – What your provider charged.

• Allowed Amount – What your insurance company considers reasonable for the service.

• What Insurance Paid – The amount your plan covered.

• What You Owe – Your responsibility after deductible, copay, or coinsurance.

Some EOBs also include notes about claim denials or next steps if you want to appeal.

Why It Matters

Reading your EOBs helps you:

• Understand your coverage

• Spot billing errors

• Track how close you are to meeting your deductible or out-of-pocket max

• Avoid surprises when bills arrive

Final Thoughts

Don’t toss your EOB in the trash! It’s an important record that shows how your insurance is working for you. If something doesn’t look right, reach out to your insurer—or your provider—for clarification.