What does a coordination of benefits ensure?

A coordination of benefits (COB) is a process used when an individual is covered by more than one health insurance policy. The primary purpose of COB is to ensure that claims are not submitted for payment more than once, preventing duplicate payments or overpayment for the same medical services or expenses.

In situations where multiple insurance policies exist, the coordination of benefits determines the order in which the insurance companies will pay claims. This is critical to maintain the integrity of the insurance system and to protect the financial interests of all parties involved. By using COB, the insurers can ensure that one plan pays its share of the cost, while the secondary plan can cover any remaining eligible costs without exceeding the total expenses.

The other options do not capture the main function of COB. For instance, while quick claims payment is desirable, it is not the primary focus of COB. Similarly, ensuring only one insurer is billed and covering all expenses do not reflect the key role of COB in preventing duplicate payments, which is central to this process.