Assignment

The assignee receives full ownership rights, including the right to name and change the beneficiary — An absolute assignment transfers all ownership rights in the life insurance policy to the assignee, including the rights to change the beneficiary, borrow against or surrender the cash value, and control the contract. This is different from a collateral assignment, which transfers only enough rights to secure a debt, leaving the owner with control over the balance of the policy. Because the absolute assignee steps into the owner's shoes, the previous owner no longer holds the right to change the beneficiary, and no beneficiary consent is required for the transfer. The assignee becomes the new owner for all purposes, so any later beneficiary changes are directed by the assignee.

National insurance concept

Accept the Medicare-approved amount as payment in full, billing the beneficiary only for the deductible and coinsurance — A participating provider who accepts assignment takes the Medicare-approved amount as full payment for the service: Medicare pays its 80% share and the beneficiary pays only the Part B deductible and 20% coinsurance. A non-assigning provider may bill the beneficiary the full charge and collect from Medicare separately, and in some cases may impose a limited 'excess charge' above the approved amount. Assignment therefore protects the beneficiary from balance billing beyond their normal cost-sharing, which is why beneficiaries are encouraged to use participating providers who accept assignment.

National insurance concept