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 used when a patient has multiple health insurance policies. When individuals are covered by more than one insurance plan, coordination of benefits helps determine which insurer pays first and how much each insurer is responsible for, ensuring that the total payment does not exceed the total cost of care.

The main aim of this process is to prevent overpayment and reduce potential disputes among insurers regarding which claim is primary, secondary, or tertiary. It ensures that the patient’s healthcare costs are appropriately managed and that they are not having claims paid twice for the same services. Understanding this concept is crucial for healthcare providers and patients alike, as it affects billing and coverage decisions.