What is one primary objective of coordination of benefits?

The primary objective of coordination of benefits is to avoid overpayment of claims by determining which plan pays first. This process is vital when a person is covered by more than one health insurance plan. Coordination of benefits establishes which insurer has primary responsibility for paying a claim and which pays secondary. This method ensures that the total amount paid by all insurers does not exceed the total value of the claim, helping to maintain fairness and preventing double payment for the same service.

In addition to ensuring efficient use of insurance resources, coordination of benefits helps streamline the claims process for both the insured individual and the healthcare providers. By clarifying which plan is the primary payer, it reduces confusion and helps speed up reimbursement for services rendered.

While other options touch upon various aspects of health insurance, they do not accurately reflect the specific goal of coordination of benefits. For instance, ensuring all services are covered at full price may not always be achievable and is not the intent of coordinating benefits. Standardizing healthcare provider fees or eliminating the need for multiple insurance plans are also not core objectives of this process. The focus remains on making sure each claim is paid correctly and only once, without unnecessary duplication.