What is cob in medical billing?

COB, or Coordination of Benefits, is a process used in medical billing to determine which insurance plan should be considered the primary payer for a patient's healthcare services. When a patient is covered by multiple insurance plans, such as through their own plan and a spouse's plan, the COB process helps determine the order in which the plans will pay for services.

COB is important because it helps prevent overpayment and ensures that the patient's out-of-pocket costs are minimized. Insurance plans typically have rules and regulations regarding which plan should be considered primary based on factors such as the patient's age, employment status, and coverage options.

Providers must verify a patient's insurance information and coordinate benefits before submitting claims to ensure that the correct plan is billed first. Failure to properly coordinate benefits can result in denials or delays in payment, causing frustration and financial burden for both the patient and the provider.

Overall, COB is a crucial component of the medical billing process that helps streamline insurance claims and ensure proper payment for healthcare services.