Coordination of benefits (COB) is a process whereby two or more insurers who are providing the same anyone to cover the same or similar health group to limit the total benefits received by the insured. Health care is important health insurance policy will pay first on medical expenses. The secondary insurance will pay after the important health insurance pays their part. At no time the combination of primary and secondary health insurance pay more than 100% of the debt is paid.

An employee is still mainly on its own coverage. A partner who is covered by a group plan would be secondary in terms of spouse. Dependents are covered on a primary basis by the health plan of the spouse with the first anniversary during a calendar year, also known as the birthday control.

For example, Mark Preton has health insurance for himself by his employer and is also covered by his wife plan.If Mark was made of the gallbladder that cost $ 5000 of his plan would be primary and pay after he has met his deductible. Say that the health plan Mark had a $ 500 deductible plan and his wife had a $ 250 deductible. Mark's plan for primary health problem, by definition, pay after $ 500 deductible is met. Once the coinsurance maximum is met when the secondary payer will pay on the claim.

In our example above, the cost of the surgery was $ 5,000 and Mark will pay the first $ 500 fully from his pocket. The rest is $ 4500, which in our example is paid at 80% to an annual maximum of pocket $ 2500. So, Mark is responsible for 20% of the remaining $ 4,500 or $ 900 female.

Mark has a plan that is secondary and the plan pay $ 250 deductible that Mark has, by his employer of his wife. This payment method allows Mark to collect a portion of its claim for $ 500.It may also coordination of benefits depending on coinsurance plans that are coordinated by two health insurers involved. Coordination of benefits also occurs on other claims for the vision of dental and other benefits offered.

The definition of primary health care or health insurance is a complex operation. Talk to your human resources department if you want more information on how coordination of benefits work for your specific case. Understanding which plan is primary and how coordination of benefits process works can save you money in the long term. However, you must always assess what the cost of insurance is for you. How much do you pay per pay period and how to pay your spouse as well. You may be overspending relative to the potential payout of coordination of benefits.