What does an "Explanation of Benefits" (EOB) provide to a policyholder?

An "Explanation of Benefits" (EOB) delivers crucial information to policyholders regarding their recent medical services. Specifically, it summarizes coverage amounts, payments made by the insurance company, and the financial responsibilities that the patient must fulfill. The EOB outlines how much of the medical service cost was covered by the insurance, any deductions made (such as co-payments or deductibles), and how much the insured person is responsible for paying out of pocket. This document is essential for helping policyholders understand their financial responsibilities following medical care and for verifying that services were billed and paid appropriately.

While a full list of covered medical services, an overview of all claims submitted, or a detailed outline of denied claims might be useful, these details are not the primary focus of an EOB. The EOB's primary purpose is to clarify what was paid, what the patient owes, and how the insurance benefits are applied to the specific services rendered, making option B the correct answer.