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

In the context of health insurance, COB stands for Coordination of Benefits. This term refers to the process that determines how insurance plans work together when a patient is covered by multiple health insurance policies. The primary aim of coordination of benefits is to ensure that the insured person does not receive more than 100% coverage for their healthcare expenses.

When a person has more than one policy, COB helps to establish which insurance is the primary payer and which will be secondary. This prevents issues such as overpayment or duplicate payments for the same medical services. It also helps streamline the claims process for healthcare providers. Understanding the role and function of coordination of benefits is crucial for both insurance coordinators and policyholders to navigate their healthcare coverage effectively.