What does COB stand for in the context of medical insurance?

In the context of medical insurance, COB stands for Coordination of Benefits. This term is used to describe the process that health insurance plans use to determine which plan pays first and how much they will each contribute when a patient is covered by multiple insurance policies.

When a patient has more than one health insurance plan, coordination of benefits helps to prevent duplicate payments and ensures that the total amount paid by all insurance plans does not exceed the total cost of the medical services provided. It outlines the responsibilities of each insurer regarding payment for claims and establishes a clear procedure to determine the primary and secondary payers. This process is crucial for ensuring that patients receive the maximum benefits without overbilling or underbilling issues arising from multiple coverages.

The other options do not accurately reflect this important aspect of insurance billing. The term "Collection of benefits" refers more broadly to the process of obtaining funds or reimbursements, while "Coordination of businesses" and "Collection of business" do not relate to the medical billing context at all. Understanding the role of COB is essential for navigating the complexities of multiple insurance policies in healthcare billing.