Question

Nathanial Drummond has three different insurance policies. He has been injured in an accident and has incurred $30,000 in medical bills. There is a provision in all of his insurance contracts that ensures the total benefits he receives from all sources is limited to 100% of allowable medical expenses. What is this provision called?

Answer 1

Answer: Coordination of benefits

Explanation:

Coordination of benefits is known as practice of making sure that claims of insurance are not being paid several times, i.e. especially when an individual is secured by two or more health plans. This provision tends to coordinate benefits from health care in order under which several health plans tends to pay benefits. Under this provision, insurance organization tend to share this burden without actually overpaying. This provision also determines which of the plans is primary and secondary.