Explanation of Benefits (EOB)
A statement from your insurance showing what was billed, what they paid, and what you owe for a medical service.
What is Explanation of Benefits (EOB)?
An Explanation of Benefits (EOB) is a document your health insurance sends after you receive medical care. It's not a bill - it's a summary showing what the provider charged, what your insurance covered, and what you may owe.
The EOB typically shows: the date of service, provider name, service description, amount billed, allowed amount, amount paid by insurance, and your responsibility. It also shows how much has been applied to your deductible and out-of-pocket maximum.
EOBs are useful for HSA record-keeping because they serve as substantiation for qualified medical expenses. They show clearly what you paid out-of-pocket, which is the amount eligible for HSA reimbursement.
Frequently Asked Questions
Is an EOB the same as a bill?
No. An EOB is an explanation from your insurance, not a payment request. You'll receive a separate bill from the provider.
Should I keep EOBs for my HSA?
Yes. EOBs are excellent substantiation for HSA expenses because they clearly show what you owed after insurance.
How long should I keep EOBs?
Keep them as long as you keep other HSA records - indefinitely if using the shoebox strategy, or at least 7 years for tax purposes.
Related Terms
Allowed Amount
The maximum amount your insurance plan will pay for a covered service, also called the negotiated or contracted rate.
Deductible
The amount you must pay out-of-pocket for healthcare before your insurance starts covering costs.
Coinsurance
The percentage of costs you pay for covered healthcare services after meeting your deductible.
Substantiation
Documentation proving that HSA distributions were used for qualified medical expenses.
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