Which term describes the process of coordinating payments across multiple insurers?

Which term describes the process of coordinating payments across multiple insurers?

• A. Coordination of benefits
• B. Double payment policy
• C. Beneficiary coordination
• D. Multi-insurer settlement

Answer: (A)

Coordination of benefits is the term for coordinating payments when a patient has more than one insurer. The goal is to prevent duplicate payments and gaps in coverage by establishing which plan pays first (primary) and how much the other plan will contribute (secondary) under COB rules. In practice, the primary plan pays up to its limits for a claim, and the secondary plan may cover remaining eligible charges according to its terms. This ensures both plans contribute appropriately and avoids overpayments. The other terms listed aren’t standard in insurance billing: a double payment policy isn’t a recognized term; beneficiary coordination relates to who receives benefits rather than payer payment coordination; multi-insurer settlement isn’t used in typical billing terminology.

Coordination of benefits is the term for coordinating payments when a patient has more than one insurer. The goal is to prevent duplicate payments and gaps in coverage by establishing which plan pays first (primary) and how much the other plan will contribute (secondary) under COB rules. In practice, the primary plan pays up to its limits for a claim, and the secondary plan may cover remaining eligible charges according to its terms. This ensures both plans contribute appropriately and avoids overpayments. The other terms listed aren’t standard in insurance billing: a double payment policy isn’t a recognized term; beneficiary coordination relates to who receives benefits rather than payer payment coordination; multi-insurer settlement isn’t used in typical billing terminology.