What is the primary purpose of coordination of benefits (COB)?

The primary purpose of coordination of benefits (COB) is to determine which insurance is responsible for payment when a patient is covered by multiple insurance plans. This process is essential in ensuring that the coverage from each plan is applied appropriately without exceeding the total amount of the medical costs. It helps prevent double payment or overpayment by aligning the responsibilities of each insurance provider according to their policies and agreements.

When a patient has more than one insurance policy, COB guidelines help establish the order of payment. This may involve distinguishing between primary and secondary insurers, ensuring that claims are billed to the correct party and that patients receive the benefits they are entitled to without unnecessary delays.

By understanding the coordination of benefits, healthcare providers can streamline the billing process, reduce confusion over which insurer pays what portion of the medical bill, and ultimately provide better service to patients navigating their coverage options.