What does Coordination of Benefits (COB) refer to?

Coordination of Benefits (COB) is a crucial aspect of insurance policies that addresses how a claim will be paid when an individual is covered by more than one health insurance plan. This process ensures that the payments from multiple insurers do not exceed the total cost of the medical services provided. COB determines which insurance plan is considered the primary payer and which is the secondary payer, thus allowing for a fair and balanced distribution of costs between the plans. By coordinating benefits, patients can maximize their insurance coverage and minimize out-of-pocket expenses for their healthcare needs.

The other options do not capture the essence of COB. For instance, discussing reimbursement for out-of-network services refers to coverage specifics rather than the interaction between multiple plans. Similarly, the total cost of medical services pertains to the overall expenses incurred rather than the payment process among insurers. Lastly, selecting a primary care physician is unrelated to how benefits are coordinated between different insurance policies. Thus, the definition of COB as it relates to multiple insurance plans makes it the correct answer to the question.