What is the purpose of the Coordination of Benefits (COB) provision?
Understand the Problem
The question asks about the purpose of the Coordination of Benefits (COB) provision in insurance. We need to identify the main reason why this provision exists.
Answer
The Coordination of Benefits (COB) provision determines how multiple health insurance plans share payment responsibilities to avoid overpayment or duplication of benefits.
The purpose of the Coordination of Benefits (COB) provision is to determine how multiple health insurance plans share payment responsibilities when a person is covered by more than one plan. COB ensures that claims are paid correctly and efficiently, avoiding overpayment or duplication of benefits.
Answer for screen readers
The purpose of the Coordination of Benefits (COB) provision is to determine how multiple health insurance plans share payment responsibilities when a person is covered by more than one plan. COB ensures that claims are paid correctly and efficiently, avoiding overpayment or duplication of benefits.
More Information
Coordination of benefits (COB) is especially important for individuals who have health coverage through more than one source, such as a spouse's plan, Medicare, or other group health plans.
Tips
A common mistake is assuming that having multiple insurance plans means all plans will pay the full amount. COB determines the order in which plans pay to prevent receiving more than 100% of the covered expenses.
Sources
- Coordination of Benefits (COB): A complete guide - eHealth - ehealthinsurance.com
- What Is Coordination of Benefits (COB)? - MetLife - metlife.com
- Coordination of Benefits (COB) - SSM Health - ssmhealth.com
AI-generated content may contain errors. Please verify critical information
