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

The primary purpose of coordination of benefits (COB) is to identify the primary health coverage. This process is crucial when a patient has multiple health insurance plans. COB ensures that there is a clear understanding of which insurance plan is responsible for paying first, referred to as the primary payer, and which is secondary. This helps prevent duplication of payments and ensures that the patient is not overcharged for healthcare services.

Identifying the primary coverage allows healthcare providers and insurers to properly allocate payment responsibilities, facilitating accurate billing and minimizing the risk of claims being denied. It is a fundamental step in ensuring that patients receive the full benefits they are entitled to under their insurance policies while also promoting fair reimbursement for healthcare providers. By doing this effectively, COB plays an important role in the efficiency and integrity of health insurance processes.