What does the assignment of benefits allow providers to do?

The assignment of benefits is an arrangement that allows healthcare providers to receive payments directly from a patient's health insurance plan rather than requiring the patient to pay upfront and later submit a claim for reimbursement. By assigning benefits, the provider can bill the insurance company directly for the services rendered, which streamlines the payment process.

When a patient signs an assignment of benefits form, they authorize their insurance carrier to send payment directly to the provider, indicating acceptance of the amount that the insurance considers allowable for the service provided. This agreement often alleviates the financial burden on the patient at the time of service, enabling them to only pay any applicable copayments or deductibles rather than the full fee upfront.

The remaining choices do not correctly reflect the function of the assignment of benefits. Charging patients directly for all services disregards the benefits of insurance, while receiving payment before services implies pre-payment, which is not part of this agreement. Negotiating fees with patients is a separate process from the assignment of benefits and is related to discussions about payment arrangements and discounts rather than insurance claim processes.