An assignment of benefits signature informs the insurance company that payments should be made to whom?

An assignment of benefits signature is a legal document signed by the patient that allows their health insurance benefits to be paid directly to the healthcare provider. This signature indicates that the patient authorizes the insurer to make payments for covered services directly to the provider rather than to the patient. The intention behind this is to streamline the payment process and reduce the burden on the patient, who would otherwise have to wait for reimbursement after having paid the provider out of pocket.

This process helps ensure that providers receive payment promptly for the services rendered, which can facilitate smoother cash flow for the healthcare facility. Other individuals and entities, such as the patient, the guarantor, or an insurance broker, do not have the authority to receive payment on the patient's behalf unless the patient explicitly designates them through separate arrangements, making the provider the appropriate recipient of these payments under the assignment of benefits.