Every time you visit the doctor or fill a prescription, your insurer probably sends you an Explanation of Benefits (EOB). Many consumers toss them or pile them on a desk, but there are several good reasons to organize and keep these documents.
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Recreate Your Health History
You may not remember the exact year your child had chicken pox or when your appendix was removed, but EOBs record dates and services. File EOBs in chronological order so you have a concise health history to share when you change doctors or complete annual medical forms.
Dispute Billing Errors
Insurance companies sometimes make mistakes. Keep EOBs so you can verify whether a claim was paid, check amounts applied to your deductible, and provide documentation if you need to dispute a bill.
Maximize Insurance Benefits
Because you pay for coverage, you want to be sure you receive the services the plan should cover. EOBs confirm specialist visits, procedures, and medications and help you track what your plan actually paid.
Support IRS Schedule A
Use EOBs to document medical expenses if you believe you qualify for an itemized medical expense deduction on your tax return; keep the records that support any deduction you claim.
Prove You Met Your Deductible
High-deductible plans are common. EOBs let you track year-to-date amounts applied to your deductible so you know when it has been met.
How Long Should you Keep EOBs?
People with normal health can keep EOBs for one year. After you complete your medical history review and verify there are no billing discrepancies or unpaid invoices, shred the EOBs.
Consumers with serious or prolonged health issues should keep records longer: at least five years after a condition is resolved, seven years if you need them for tax records, and indefinitely for chronic conditions. For guidance on storing records and limits related to large expenses, see Medical Expense Limit / StorageFirst.
Organize and store documents in a dry, mildew-proof box or secure digital folder, and take time to review with an agent to confirm your coverage meets your needs and budget.
Frequently Asked Questions
What is an Explanation of Benefits (EOB)?
An EOB is a statement from your insurer that explains what was billed by a provider, what the plan paid, and what you may owe.
Can I use an EOB for taxes?
You can use EOBs to document medical expenses if you plan to itemize deductions and meet IRS rules for deductible medical costs.
How long should I keep EOBs if I have a chronic condition?
If you have a chronic illness, keep EOBs and related medical records indefinitely so you have a continuous treatment history.
What should I do if an EOB shows an error?
Contact your insurer and the provider promptly, keep copies of the EOB and any correspondence, and follow up until the discrepancy is resolved.