Why is it important for a provider to agree to accept assignment?

Accepting assignment is crucial for providers because it establishes a mutual agreement with the insurer regarding payment for services rendered. When a provider agrees to accept assignment, they are committed to accepting the amount the insurance company pays as full payment for the covered services, rather than pursuing the patient for the remaining balance. This arrangement ensures that the provider will receive a predetermined amount directly from the insurance company, which can streamline the revenue collection process.

Additionally, accepting assignment can enhance a provider's financial predictability, as they know what to expect in terms of reimbursement. This agreement minimizes uncertainty regarding patient balances and can improve patient satisfaction since individuals are typically responsible only for copays and deductibles, rather than incurring additional costs that were not disclosed upfront.

While avoiding disputes with patients and simplifying the billing process can be favorable outcomes, the primary reason for a provider to accept assignment revolves around receiving full and usually timely payment from the insurance company.