What does "assignment of benefits" allow in health insurance?

"Assignment of benefits" is a valuable provision in health insurance that facilitates the direct payment to healthcare providers. When a patient assigns their benefits to a healthcare provider, they empower the provider to bill the insurance company directly for services rendered. This means that the insurance payment is made not to the patient but to the healthcare provider, which can ease the financial burden for the patient at the time of service and streamline the payment process for providers.

This process is particularly beneficial in situations where healthcare costs are significant, as it allows patients to focus on their recovery rather than handling the intricacies of insurance claims. It also minimizes the risks associated with billing disputes and ensures that healthcare providers receive timely payments for their services.

The other options revolve around different aspects of health insurance, but they do not accurately define the purpose of assignment of benefits. For instance, direct payments to policyholders do not encompass the intent of allowing providers to receive payments directly. Similarly, while some insurance plans allow patients to choose providers without referrals, this is unrelated to financial arrangements under assignment of benefits. Lastly, denying claims is contrary to the concept of assignment, as this provision aims to facilitate, not hinder, the payment process.