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An explanation of benefits is a document that explains how your insurance processed the claim for the services you received. An Explanation of Benefits (EOB) is a statement that your insurance company sends that summarizes the costs of health care services you received.An EOB is NOT A BILL. You can also use it to track how you and your family use your coverage. An EOB is a statement from your health insurance plan describing what costs it will cover for medical care or products you've received. EOB stands for Explanation of Benefits. This is a document we send you to let you know a claim has been processed. One of the many documents you'll get after a health care visit is an explanation of benefits, often called an EOB. The Explanation of Benefits (EOB) is meant to make sure that the patient is aware of the charges that have been filed on their behalf. EOBs are created when an insurance provider processes a claim for services received.