What is the purpose of coordination of benefits (COB)?

The purpose of coordination of benefits (COB) is specifically to determine how multiple insurance policies will pay for services. When a patient has more than one insurance policy, COB is utilized to establish the order in which these policies will cover the costs associated with healthcare services. This ensures that claims are processed correctly and that payments do not exceed the total cost of the services rendered. By having a structured approach to coordinate benefits, patients can avoid issues such as duplication of payments, and providers can receive accurate compensation for their services.

The other options do not capture the primary function of COB. Assessing a patient's eligibility for government assistance is a separate process that deals with qualifying for programs such as Medicaid or Medicare, not specifically related to coordinating payment responsibilities. Calculating total medical expenses is more about financial accounting and does not pertain to coordinating how benefits are applied. Identifying which pharmacy to use for prescriptions involves network or formulary considerations and is not aligned with the primary aim of COB.