How to Read and Understand Billing Statements

The following list explains each element of your medical bill with an in-depth description. Just to be clear, this is different from an Explanation of Benefits (EOB). An EOB is a statement from your insurance company about what will or will not be covered.

  • Statement Date: The date your healthcare provider printed the bill.
  • Account Number: This is your own unique account number. It’s typically needed when paying a bill online and when discussing medical bills with your healthcare provider’s billing office.
  • Service Date: Your bill includes a column listing the dates you received each medical service.
  • Description: This is a short phrase that explains the service or supplies you received.
  • Charges: This is the full price of the services or supplies you received before insurance has been factored in.
  • Billed Charges: This is the total amount charged directly to either you or your insurance provider.
  • Adjustment: This is the amount the healthcare provider has agreed not to charge.
  • Insurance Payments: The amount your health insurance provider has already paid.
  • Patient Payments: The amount you are responsible to pay.
  • Balance / Amount Due: The amount currently owed the healthcare provider.
  • Payable to: This is the organization you should address check payments to.
  • Service code / Current Procedural Terminology (CPT): Healthcare providers use a standardized code to identify the exact services and supplies you received during your appointment.

Now that the terminology has been defined, let’s take a look at steps every patient can take to better understand if their healthcare bill is correct.


See the source image

See the source image

Sign up for our Newsletter

Get the latest news about the health care industry
straight to your inbox!