In Florida’s Personal Injury Protection (PIP) system, one of the most important documents a medical provider can obtain from a patient is an Assignment of Benefits, commonly called an AOB. This simple form determines whether the provider has the right to bill the insurer directly and receive payment for treatment.

Without a proper AOB, providers may face delays, reduced payments, or difficulties recovering reimbursement for services already rendered.

This guide explains what an AOB is, why it matters, and why every new PIP patient should sign one at the first visit.

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What Is an Assignment of Benefits (AOB)?

An Assignment of Benefits is a document that allows the patient to transfer certain insurance rights to the medical provider.

In the PIP context, an AOB typically gives the provider:

• The right to bill the insurer directly
• The right to receive direct payment
• The right to respond to insurer requests related to the patient’s treatment
• The right to pursue unpaid PIP benefits or underpayments
• The right to take action in court to recover benefits if payments are improperly denied or reduced

With an AOB, the provider steps into the patient’s shoes for billing and benefit-recovery purposes.

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4 Reasons an AOB Is Essential for PIP Providers

✔ 1. It Allows the Provider to Bill the Insurer Directly

Without an AOB, the insurer technically owes payment to the patient, not the provider.
This can create serious delays and confusion—especially if the patient misplaces the check.

With an AOB, payment goes straight to the clinic.

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✔ 2. It Helps Avoid Payment Delays and Billing Complications

Insurers often require proof that the provider is authorized to receive payment.
Without an AOB, providers may see:

• Delayed claims
• Requests for additional documentation
• PIP checks issued to the patient, not the clinic
• Returned or rejected bills

Having a signed AOB prevents these issues.

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✔ 3. It Allows Providers to Address Billing Issues Directly

When an insurer applies fee schedule reductions, requests documentation, or denies a charge, an AOB allows the provider to respond directly—without needing the patient involved.

This is critical for:

• Submitting corrected claims
• Responding to requests for information
• Clarifying treatment details
• Tracking payment and EOB issues

Without an AOB, these tasks are much harder for the clinic.

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✔ 4. It Gives the Provider Legal Standing to File Suit to Recover Unpaid or Underpaid Benefits

A properly executed Assignment of Benefits transfers the patient’s right to PIP benefits to the provider. This includes the right to take action when benefits are not properly paid.

With a valid AOB:

• The provider may stand in the patient’s place for billing and benefit-recovery purposes
• The provider may pursue reimbursement directly from the insurer
• The provider has the legal standing necessary to file suit to recover unpaid, underpaid, or improperly reduced PIP benefits
• The provider is not dependent on the patient to pursue the dispute

Without an AOB, only the patient has the right to pursue those benefits, limiting the provider’s ability to recover payment for services already rendered.

Tips for Clinics Implementing AOB Compliance

While this site does not provide legal advice, clinics may find the following helpful:

✔ Make the AOB part of the standard intake packet

✔ Have staff confirm it is filled out completely

✔ Ensure signatures are clear and dated

✔ Keep digital and physical copies in the patient file

Disclaimer

This article is intended for educational purposes only and should not be interpreted as legal advice.
Providers should consult a licensed attorney for questions regarding specific claims or legal rights.