Let’s talk about a topic that sends front office teams reaching for aspirin: Assignment of Benefit (AOB). If you’re a dentist who’s ever had a patient look at you like you’re the villain because their insurance sent the check to them instead of your office—pull up a chair. This one’s for you.

What is Assignment of Benefit, Anyway?

Assignment of Benefit (AOB) is a simple concept: a patient assigns their right to insurance payment over to the dentist, and the insurance company sends the reimbursement directly to the provider. This keeps patients from becoming middlemen and gives practices some peace of mind when dealing with collections.

But here’s the catch: some insurance companies don’t allow AOB unless you’re in-network. That’s right. Even if the patient has a PPO plan and clearly has out-of-network benefits, the insurer may say, “Nope, not unless you’re one of ours.”

Sound shady? You’re not alone in thinking that.

The Law They Lean On: The Leach, Graham, Bliley Act

Our legal team has confirmed that insurance companies lean on the Gramm–Leach–Bliley Act (GLBA) to justify this behavior. While the GLBA was created in 1999 to address financial privacy and information sharing—not dental plans specifically—it’s been interpreted in ways that allow insurers to restrict AOB rights if a provider isn’t in-network.

In other words, they’re not technically breaking the law, but they are bending it into a pretzel to serve their bottom line.

Why This Should Concern You

Let’s be honest—this isn’t about paperwork. This is about steering patients away from dentists of their choosing. It’s about punishing patients who dare step foot outside the insurance company’s carefully controlled dentist zoo.

Even though patients pay for out-of-network benefits, they’re penalized by having to pay the full amount up front and wait for reimbursement—sometimes for weeks, sometimes longer. And when the check finally comes, the patient might just “forget” to pay the dentist. (You know exactly what we’re talking about.)

And here's the kicker: some of the best dentists in the country are now out-of-network. Not because they don’t care about patients, but because they refuse to enter into contracts that compromise quality care, fair pricing, and clinical autonomy.

So tell us again how insurance networks “vet” providers?

What Can Dentists Do When AOB Isn’t Honored?

Good question. And yes, there are solutions.

1. Educate Your Patients—Early and Often

Have an honest conversation with patients upfront about their insurance plan’s refusal to assign benefits. Explain why they’ll have to pay upfront and let them know this is not your rule—it’s the insurance company’s.

Pro tip: Use language like “Your insurance plan doesn’t allow us to accept direct payment unless we’re in-network, which we’re not. You still have benefits, but they’ll reimburse you instead of paying us directly.”

2. Provide the Tools for Reimbursement

Make it easy for your patients:

• Submit the claim on their behalf

• Print a receipt with all CDT codes

• Provide a stamped envelope with the insurance company’s address

• Walk them through the reimbursement timeline

Small things go a long way.

3. Use Financial Policies and Pre-Authorizations

For larger cases, get pre-treatment estimates, set up financing, and have patients sign financial consent forms. When patients understand what’s coming, they’re more likely to pay and less likely to disappear when that reimbursement check hits their mailbox.

4. Join the Movement, Not the Network

Going out of network isn’t a scarlet letter—it’s a strategy. More dentists are making the move to reclaim control of their schedules, fees, and treatment plans. Insurance companies may throw roadblocks like AOB restrictions, but with proper systems and coaching, you can still thrive as an out-of-network provider.

And remember—you’re not alone. Teams like Veritas Dental Resources exist to help you understand, navigate, and fight back against these unfair tactics.

Final Thought: Let’s Not Pretend This Is About “Protecting Patients”

If the real concern was protecting patients, insurers would pay the provider directly and eliminate this confusion altogether. But when patients are inconvenienced or discouraged from seeking care out-of-network, it’s clear this isn’t about protection—it’s about control.

So, dentists, keep fighting the good fight. Provide excellent care, advocate for your patients, and stand tall knowing that insurance doesn’t define your value—you do.

And if you ever feel like insurance is making up the rules as they go? Give us a call. At Veritas, we’ve read the playbook—and we’ve got a few strategies of our own.

Need help dealing with insurance nonsense like this?
Reach out to Veritas Dental Resources for expert support, coaching, and a team who gets it.

Because you shouldn’t have to practice law just to practice dentistry.

Benjamin Tuinei

Founder - Veritas Dental Resources, LLC
Phone: 888-808-4513

Services:
PPO Fee Negotiators | PPO Fee Negotiating | Insurance Fee Negotiating
Insurance Credentialing | Insurance Verifications

Websites:
www.VeritasDentalResources.com | www.VerusDental.com