Which statement best describes the effect of assigned benefits on payment flow?

• A. Insurer pays the provider directly.
• B. The insured pays the provider first and is reimbursed later.
• C. The provider pays the insurer.
• D. Payments go to the patient.

Answer: (A)

Assigned benefits means the insured authorizes the insurer to pay benefits directly to the provider. This arrangement streamlines the payment process, so the provider is paid directly at the time of service or when claims are processed, reducing the need for the patient to pay upfront and then seek reimbursement. Without assignment, the common flow would be the patient paying the provider and later being reimbursed by the insurer, or the insurer paying the patient who then pays the provider. Therefore, saying the insurer pays the provider directly best describes the effect of assigned benefits.