Assignment of Benefits describes:

• A. The patient authorizes direct payment to the physician from the insurer, and the insurer pays according to their reasonable charges.
• B. The insurer pays the patient first, then the patient pays the physician.
• C. The insurer determines medical necessity for services.
• D. The patient signs an annual authorization for payments.

Answer: (A)

Assignment of benefits means the patient authorizes direct payment from the insurer to the healthcare provider, and the insurer pays the provider according to their reasonable charges. This arrangement streamlines payment, so the provider bills the insurer directly and the patient only pays any remaining patient responsibility (like copays or deductibles) as dictated by the policy. It also reduces the need for the patient to handle reimbursement after the claim.

This concept is about who receives the payment, not about clinical decisions or who signs annual authorizations. It doesn’t involve the insurer deciding medical necessity, nor does it imply the insurer pays the patient first or require an annual authorization.