An individual’s insurance policy may have specific items for which expenses are covered, not covered, or partially covered.
Insurance reimbursement is when someone is reimbursed under an insurance policy for expenses that have occurred and are covered by the policy. These policies can be for medical or dental insurance, home insurance, auto insurance, or other types of insurance. Some types of insurance reimbursements are paid to the insured under the insurance policy. Other types of reimbursement are paid directly to the supplier of a particular good or service after the supplier has submitted a benefit assignment document to the insurer.
A home owner who pays out of pocket to repair damage caused by a thief may be reimbursed by his insurance company.
Each insurance policy has specific items for which expenses are covered, not covered or partially covered. It is the responsibility of the insured or transferee to provide the insurer with appropriate information so that the insurer can determine what is and is not covered by the specific policy. The insurer will provide an explanation of benefits that documents how reimbursed expenses were calculated. This explanation of the benefits document is the insurer’s response to the insured’s or transferee’s claim for reimbursement.
It is imperative that the insured or his transferee, such as a physician’s office, accurately completes the insurer’s forms in order to receive the highest insurance reimbursement available from the insurer. When an insured selects a medical service provider, for example, it is a good idea for them to know if that provider has ever worked with their insurer. Each insurer has specific information they are looking for in an insurance claims application. If the application form does not have this information, your initial refund request may be denied. Denial can always be appealed, but that takes longer.
If a selected medical provider does not work with a specific insurer, the insured will likely have to pay for those medical services at the time the services are provided. It is then up to the insured to file a claim for insurance reimbursement with the insurer. Each policy has different requirements for co-payments and annual minimums to be met before reaching reimbursement eligibility. When the policyholder pays for medical services out of pocket and then receives reimbursement, it may take several months for the policyholder to receive the amounts due under the policyholder’s policy.
When a specific medical provider works directly with an insurer, the insured is required to sign a benefit assignment document with the medical provider. The insured may be required to make a co-payment for services provided on the date those services are provided. The medical service provider is then responsible for working with the insurer to collect payment for the insurance reimbursement.