Final answer:
SIGNATURE ON FILE is entered in Block 12 when the patient has assigned benefits to the healthcare provider's office, indicating the provider has authorization to receive payment directly from the insurance company. The correct option is 1.
Step-by-step explanation:
The phrase SIGNATURE ON FILE is used in medical billing and insurance claims to indicate that the patient's authorization for the release of information and payment of benefits directly to the provider has been obtained and is kept on record by the healthcare provider.
It is appropriate to enter SIGNATURE ON FILE in Block 12 on a medical claim form under specific circumstances. These include when the patient has assigned benefits to the healthcare provider's office, which means they have authorized the insurance company to pay the provider directly for services rendered.
The use of SIGNATURE ON FILE is not necessarily related to the patient providing their insurance information, the specific amounts that the provider accepts as reimbursement, or the provider's participation status with the patient's insurance. Therefore, the most accurate condition to enter SIGNATURE ON FILE in Block 12 is when the patient has assigned benefits to the office.