What is the term for a patient's written authorization allowing an insurance company to pay the physician directly?

The term "Assignment of Benefits" refers to a patient's authorization that allows an insurance company to pay benefits directly to a provider, such as a physician, for services rendered. This process streamlines billing and payment for both the patient and the healthcare provider. Instead of the payment being made to the patient who then pays the provider, the insurance company directly compensates the provider, which can help ensure timely payment and reduce the administrative burden on patients.

This concept is essential in healthcare as it impacts cash flow for medical practices and assists patients in obtaining care without upfront payment challenges, as they are generally only responsible for copayments, deductibles, or any uncovered services.

In practice, the assignment of benefits ensures that healthcare providers can operate efficiently while patients receive necessary services without having to manage the financial transaction independently after treatment.