What is an assignment of benefits?

An assignment of benefits is a type of insurance contract that is utilized by insurance companies in Arizona to help administration and payment of insurance claims. In this type of agreement, an insured person (the assignor) gives permission for a third-party provider, such as a medical provider or contractor, to receive direct payment for services rendered or goods provided. The assignor, in exchange for the payment, then relinquishes their right to receive reimbursement directly from the insurance company for services or goods provided by the third party. This allows the insurance company to more quickly and efficiently process claims, and decreases some of the burden on the insured. It also helps to make sure that the assignor’s bills get paid, as the provider or contractor is assured that payment for their services or goods will be made directly by the insurance company. Although it can make the process of filing claims and getting reimbursed easier and faster, the assignment of benefits is only for very specific types of claims and services to ensure that the assignor’s rights are protected.

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What is an assignment of benefits?

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