For someone covered by two or more group health insurance policies, the term COB, short for coordination of benefits, would be used in such a scenario. Group insurance was designed to cover major medical expenses; however, it was never intended to pay in excess of 100% of incurred charges. For this reason, coordination of benefits was established as a method by which two or more carriers or plans could coordinate their respective benefits so the total benefit paid does not exceed 100% of the total allowable expenses incurred. In most states, the coordination of benefits regulations specifies how benefits are to be coordinated by insurance companies issuing group policies in the state.
In most states, individual health insurance policies do not have to comply with the coordination of benefits rules. Those policies may have special provisions in place if you have more than one policy. You should review your individual health insurance policy to see how it pays if other insurance is involved.
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In most states, individual health insurance policies do not have to comply with the coordination of benefits rules. Those policies may have special provisions in place if you have more than one policy. You should review your individual health insurance policy to see how it pays if other insurance is involved.