Assignment of Benefits (AOB)
Assignment of benefits (AOB) is a patient authorization directing the insurer to pay claim proceeds directly to the provider rather than to the patient. Surgery centers obtain AOB at registration to ensure they receive payer reimbursement directly.
What is assignment of benefits (AOB)?
Assignment of benefits (AOB) is a patient's written authorization directing their insurer to pay claim proceeds directly to the provider rather than sending payment to the patient. It transfers the right to receive the insurance payment from the patient to the provider.
The authorization is typically captured during registration as part of the intake paperwork. Once on file, it lets the payer reimburse the provider directly for covered services.
Why does it matter for the revenue cycle?
Without an assignment of benefits, an insurer may pay the patient directly, leaving the provider to collect that money from the patient afterward, a slower and far less reliable path. AOB removes that detour and reduces the risk of funds never reaching the provider.
Surgery centers routinely secure AOB at the front end so that payer reimbursement flows straight to them. Capturing it correctly at registration is a simple but important safeguard for cash flow.
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