When enrolling in a healthcare plan it is a common practice to choose a primary physician out of a provided network. The primary physician is generally chosen by location and if you don’t choose one, you are automatically assigned one that is close to your home address. Primary physicians are used for all simple types of medical check ups and common visits, and must refer you to specialists when necessary.

The two most frequently used plans offered by employers are the HMO and PPO plans, each with their own network of doctors and specialists for you to choose from when you first set up your health insurance coverage. However, there are instances (such as traveling out of state) when you may come across a medical emergency and will require healthcare services from a provider outside of your network. Healthcare providers are aware that these types of situations may occur and allow you to exercise a procedure called assigned benefits. This procedure is an agreement between you and your insurer in which you request for any payments to be paid directly to third party facilities that lay out of the network.

Assigned benefits are an effective way to streamline the resolution of healthcare payments due to several reasons. In the first place, if you are in need of medical services outside of your network, it is most likely a medical emergency and you will not lose time searching for a facility that is included in your plan. You do not have to risk your health by making lengthy phone calls and waiting for approval, but instead you are granted access to the closest hospital or clinic.

The second advantage of using assigned benefits is being able to be attended by any out of network facility and knowing that you will not be stuck with the bill for your medical services. Almost every state has laws that prevent out of network facilities from failing to recognize a consumer’s choice to have his or her insurance company to be billed directly. All hospitals have the necessary forms for your assignment of benefits to be acknowledged and to insure the payments are made directly to them.

Lastly, the assignment of benefits agreement saves you time and paperwork as the process of receiving payment is between the out of network healthcare provider and your insurer. All bills and payments will be exchanged and resolved without the consumer getting directly involved.

Remember that when exercising your assignment of benefits, your health insurance coverage is in no different that when you use a network provided doctor or hospital. Research this aspect of coverage and see if it applies to your particular policy or if you need to add it.