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For example, suppose you visit your doctor and get billed $250 for the appointment. Your primary health plan may cover the majority of the bill. Lets say, for example, thats $200. Then your secondary plan would pay the remaining $50.
Coordination of benefits (COB) is part of the insurance payment process. It is how insurance companies decide who covers the cost of your care in a given situation. Insurance companies follow general principles to establish the order each company will pay. Your primary payer covers the largest share of the cost.
Coordination of benefits or COB means a provision establishing an order in which plans pay their claims, and permitting secondary plans to reduce their benefits so that the combined benefits of all plans do not exceed total allowable expenses.
This COB rule applies when a patient has two jobs, and they are enrolled in benefits packages at both jobs. Whichever plan they enrolled in first will be the primary insurance. Then, the insurance plan they enrolled in later with their second job would be the secondary insurance.
Common reasons for the coordination of benefits to be requested by insurance are: When an individual is covered by their employers policy and is also covered under their spouses plan. When an individual has a private or marketplace plan and has an additional plan through a spouse or parent.
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About Coordination of Benefits COB claims are those sent to secondary payers with claims adjudication information included from a prior or primary payer (the health plan or payer obligated to pay a claim first). These claims can be sent 1) from provider to payer to payer or 2) from provider to payer.

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