When a provider accepts assignment, what does this mean?

When a provider accepts assignment, it indicates that they are agreeing to accept the payment amount determined by the insurance company as full compensation for the services rendered. This means that the provider will not bill the patient for any additional amounts beyond what the insurance will pay for covered services, assuming the patient has met their policy obligations such as copayments, deductibles, or coinsurance. Acceptance of assignment usually simplifies the billing process for the patient and ensures that the provider is receiving payments based on the predetermined rates set by the insurance companies, which can foster better relationships with both payers and patients.

This practice is common among providers who participate in managed care programs, as it helps to manage patient costs and avoid billing disputes. It is important for providers to communicate this clearly to patients, so there is an understanding of what financial responsibility lies with the patient after insurance considerations.