Final answer:
By signing block 12 of the CMS-1500 form, a patient authorizes the release of medical information necessary to process the claim and directs payment to the healthcare provider. This action is crucial for the efficient management of insurance claims and the protection of personal medical information.
Step-by-step explanation:
By signing block 12 of the CMS-1500 form, a patient is authorizing the release of medical information necessary to process the claim and is also giving an assignment of benefits to the provider. This means the patient permits their health insurance company to pay the provider directly. Additionally, the signature serves as a certification that the information on the form is accurate and complete to the best of their knowledge.
It is important for patients to understand what their signature implies to avoid any confusion regarding the handling of their personal medical information and the processing of insurance claims. Healthcare providers often ensure that patients are aware of these implications before they sign the form.