What role does an insurance card play in healthcare billing?

The insurance card is a crucial document in healthcare billing as it identifies the patient's insurance coverage and benefits. This information is essential for healthcare providers to determine which services are covered under a patient's plan and at what level. The card typically includes vital details such as the patient's policy number, the name of the insurance provider, and contact information for the insurance company.

Having this information allows healthcare providers to verify coverage before services are rendered and assists in the billing process by ensuring that claims are submitted correctly to the right insurance company. This verification can help prevent billing issues and ensure that payments are processed efficiently. Therefore, the insurance card serves as a fundamental tool for both healthcare providers and patients in managing health insurance claims.