Coordination of benefits
Coordination of benefits is a term that is frequently used in the area of dental insurance. It is a term that describes when an individual is covered by more than one dental insurance policy. This term refers to how each policy is going to pay when a claim is generated. Both insurance companies are going to have to work together in order to make sure that the claim is paid appropriately. This is most commonly seen when an individual has a group insurance plan through their employer, and is also covered through a spouse’s employer plan.
Paying the Claim
When the two insurance companies work together, they have to make sure that the claim is paid. They have to make sure that a maximum of 100 percent of the claim is paid. You will most likely need to work in conjunction with both insurance companies and communicate with them in order to complete this process. Each will pay a certain portion and you will need to work with them both because sometimes one insurance wants the other one to pay the higher costs. The coordination can be long, so be prepared with your insurance paperwork when you call.