What is the purpose of the Coordination of Benefits information?

The purpose of Coordination of Benefits (COB) information is primarily to prevent improper payments from Medicare and to ensure that claims are processed accurately when there are multiple insurance plans involved. When a patient has more than one insurance coverage, it's essential to determine the order in which the payers will cover the costs of healthcare services. This ensures that the patient receives the full benefits of their insurance coverage and prevents situations where an insurer might be billed improperly.

By utilizing COB, healthcare providers can accurately coordinate which insurance plan pays first and how much each plan will contribute, thereby reducing the risk of overpayments or payment denials. This process protects Medicare and other insurers from incurring unnecessary costs and helps maintain the financial integrity of the healthcare system.

This function doesn't involve consolidation of claims under one insurance or the direct processing of payments for services. Additionally, while effective management of patient records is crucial, it is not specifically related to the function of COB information.