When it comes to health insurance, there are many different terms and acronyms that can be confusing to understand. Two important ones are the Employer Identification Number (EIN) and the Plan Number (PN). In this post, we'll take a closer look at what these numbers are and why they are important.
The Employer Identification Number (EIN) is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity for tax purposes. In the context of health insurance, the EIN is used to identify the employer that sponsors a group health insurance plan. This number is important because it allows the insurance company and healthcare providers to identify who is responsible for paying for your health insurance.
The Plan Number (PN), also known as the Policy Number or Group Number, is a unique identifier assigned by the insurance company to a particular group health insurance plan. This number is typically used by healthcare providers and insurance companies to verify coverage and process claims. When you enroll in a group health insurance plan through your employer, you will typically be provided with the Plan Number as well as other information, such as the name of the insurance carrier and the type of plan (e.g., PPO, HMO, etc.).
EINs and PNs are important because they allow healthcare providers and insurance companies to identify who is responsible for paying for your health insurance, as well as which specific plan you are enrolled in. This information is necessary in order to verify your coverage and process claims.
For example, if you go to the doctor and they ask for your insurance information, you will need to provide them with your EIN and PN so that they can verify your coverage and submit a claim to your insurance company. Similarly, if you need to contact your insurance company to ask a question or file a complaint, they may ask you for your EIN and PN in order to identify your specific plan.
In summary, the Employer Identification Number (EIN) is used to identify the employer that sponsors a group health insurance plan, while the Plan Number (PN) is used to identify the specific insurance plan that an individual is enrolled in. By understanding these numbers and why they are important, you can navigate the world of health insurance with greater ease and confidence.
