Question

A binding arrangement under which an insured requests that payments under their health plan be made directly to a person or facility that they designate (such as a doctor or hospital) is called:

a) Third-party administrator
b) Indemnity arrangement
c) Assignment of benefits
d) Preferred provider organization

Answer 1

An assignment of benefits is a binding arrangement where an insured requests that payments under their health plan be made directly to a designated person or facility. It ensures that the reimbursements go directly to the healthcare provider without the need for reimbursement.

Step-by-step explanation:

A binding arrangement under which an insured requests that payments under their health plan be made directly to a person or facility that they designate (such as a doctor or hospital) is called an Assignment of benefits. In this arrangement, the insured gives their consent for the insurer to pay the reimbursements directly to the designated person or facility. This can be useful when the insured wants to ensure that the payments go directly to their healthcare provider, avoiding the need for reimbursement.