This content is for general informational purposes and does not constitute medical, legal, or financial advice. Healthcare rules and costs change annually. Last reviewed: January 1, 2025. Always verify current details with your insurer, employer, or a licensed healthcare navigator.
EOB (Explanation of Benefits)
A statement from your insurer explaining what was billed, covered, and what you owe.
Full Definition
An Explanation of Benefits is not a bill — it's a summary document your insurer sends after a claim is processed. It shows the service provided, what the provider charged, what your insurer paid, any adjustments, and what you owe. Reviewing your EOB helps you catch billing errors, understand your cost-sharing, and track your deductible and out-of-pocket maximum progress.
Real-World Example
After a lab test, you receive an EOB showing the lab billed $300, your insurer negotiated it down to $180, paid $144 (80%), and you owe $36 (20% coinsurance after your deductible).
Related Terms
Was this helpful?