EOB Denials The service you had is not covered by the health insurance plan benefits (also called a non-covered benefit). Your insurance coverage was ended (terminated) before you received this service. You received the service before you were eligible for insurance coverage (not eligible for coverage).
Some basic pointers for handling claims denials are outlined below. Carefully review all notifications regarding the claim. Be persistent. Don't delay. Get to know the appeals process. Maintain records on disputed claims. Remember that help is available.
Claims are denied for incomplete or inaccurate patient information. Claims are often denied because the patient's name, address, or insurance information do not match the information on file with their payer. This type of denial is often the result of manual claims processes.
Understanding what causes claim rejections Insurance information. Incorrect member ID. Incorrect payer ID. Demographic information. Incorrect date of birth. Misspelled name. Incorrect address. Diagnosis codes/billing information. Invalid or outdated ICD code. Invalid CPT code. Incorrect or missing modifier.
Reasons for Claim Denial Invalid or missing codes: Insurance companies use specific codes to identify procedures, diagnoses, and medical equipment. If these codes are missing or incorrect, the claim may be denied. This is often due to human error, such as a typo or misunderstanding of the coding system.
Process Errors The claim has missing or incorrect information. Whether by accident or intentionally, medical billing and coding errors are common reasons that claims are rejected or denied. The claim was not filed in a timely manner. Failure to respond to communication. Policy cancelled for lack of premium payment.
Business people commonly use COB and EOB interchangeably. EOB stands for “end of business,” a phrase that has the same meaning as “close of business.” In other words, the time when a company closes its doors at the end of the day.
The EOB is your insurance company's written explanation for that claim, showing the name of the provider that covered the service and date(s) of service. The insurer is also required to send you a clear explanation of how they computed your benefits.
Claim Denials are claims that have been received and processed by the insurance carrier and have been deemed unpayable for a variety of reasons. These claim denials typically contain an error that was flagged after processing.