Benefit Experts

Benefits 101 / Bills and claims

What is an EOB—and what do I owe?

An Explanation of Benefits shows how your health plan processed a claim. Use it to understand the amounts before you compare them with a provider’s bill.

You do not pay an EOB. It explains the claim. The provider sends a bill separately, and payments you already made may reduce the balance due.

Read a sample, one line at a time.

Illustrative only. This is a simplified example for covered, in-network care—not a real claim, carrier document, or coverage guarantee.

Sample health plan

Explanation of Benefits
THIS IS NOT A BILL
Example member · Claim SAMPLE-001 · Covered office procedure
Assumptions: $75 deductible remaining, then 20% member coinsurance; no copay, other insurance, or out-of-pocket-limit adjustment.
1
Provider charge

The amount submitted by the provider.

$1,000
2
Network adjustment

The contractual reduction in this example. It is not added to your share.

−$400
3
Allowed amount

The amount used here to calculate the covered claim payment.

$600
4
Plan pays

The plan’s share after the deductible and coinsurance calculation.

$420
5
Your share

Your deductible and coinsurance in this example, before payments already made.

$180

Already paid $30 to the provider? If all payments and adjustments have posted, the remaining bill for this example would be $150—not another $180.

Where the $180 comes from

  1. Start with the $600 allowed amount.
  2. Apply the remaining deductible: $75. That leaves $525.
  3. Your 20% coinsurance on $525 is $105.
  4. Your share is $75 + $105 = $180. The plan pays the other $420.
Plan: $420
You: $180
These percentages show the split of this example’s entire allowed amount. Your share includes both the deductible and coinsurance.

Compare the bill with the claim.

  1. Match the visit. Check the patient, provider, date, and services. A bill can combine more than one claim.
  2. Read the explanation codes. Look for adjustments, pending items, or a denial. A code explains why the plan handled a charge that way.
  3. Account for earlier payments. Compare the bill with your receipts and the latest EOB. Ask whether a corrected claim or another insurer is still processing.
  4. Ask about a mismatch. The plan can explain its claim decision; the provider’s billing office can explain the bill and payments received. Ask about due dates while a discrepancy is reviewed.
A helpful question: “My EOB shows a member share of $180, and I already paid $30. Can you show me how you calculated the balance?”

Keep a record of the answer.

Save the EOB, itemized bill, receipts, and notes from your calls. If the plan denies a service, check the notice for appeal instructions and deadlines.

Read the guide to a denied claim →

Sources checked September 19, 2026. General information; your plan and circumstances matter.

CMS: how to read an EOB
Sharing this with a team? Employers can explore employee education for a conversation about plan costs and enrollment.