Assignment of Benefits (AOB) Definition

Assignment of Benefits (AOB) is a written authorization signed by a patient that allows their health insurance benefits to be paid directly to a healthcare provider or facility. When a patient signs an AOB, they authorize their insurance company to send reimbursement payments for covered services directly to the provider, rather than to the patient themselves.

AOB is commonly used in healthcare settings to streamline payment processes and reduce out-of-pocket expenses for patients. It ensures that healthcare providers receive timely payment for services rendered without requiring patients to pay upfront and seek reimbursement later. AOBs are typically used in situations where healthcare services are covered by insurance, and the provider agrees to accept the insurance company’s reimbursement as payment in full, minus any applicable deductibles, co-payments, or co-insurance.