Washington Administrative Code › Title 284 - Insurance Commissioner, Office of the › Chapter 284-51 - Standards for coordination of benefits › Section 284-51-260 - Appendix B - Consumer explanatory booklet

Current through Register Vol. 24-14, July 15, 2024
COORDINATION OF BENEFITS
IMPORTANT NOTICE
This is a summary of only a few of the
							 provisions of your health plan to help you understand coordination of benefits,
							 which can be very complicated. This is not a complete description of all of the
							 coordination rules and procedures, and does not change or replace the language
							 contained in your insurance contract, which determines your
							 benefits.
Double Coverage
It is common for family members to be covered by more than one
				health care plan. This happens, for example, when a husband and wife both work
				and choose to have family coverage through both employers.
When you are covered by more than one health plan, state law
				permits issuers to follow a procedure called "coordination of benefits" to
				determine how much each should pay when you have a claim. The goal is to make
				sure that the combined payments of all plans do not add up to more than your
				covered health care expenses.
Coordination of benefits (COB) is complicated, and covers a
				wide variety of circumstances. This is only an outline of some of the most
				common ones. If your situation is not described, read your evidence of coverage
				or contact your state insurance department.
Primary or Secondary?
You will be asked to identify all the plans that cover members
				of your family. To avoid delays in claim processing, if you are covered by more
				than one plan you should promptly report to your providers and plans any
				changes in your coverage. We need this information to determine whether we are
				the "primary" or "secondary" benefit payer. The primary plan always pays first
				when you have a claim.
Any plan that does not contain your state's COB rules will
				always be primary.
When This Plan is Primary
If you or a family member is covered under another plan in
				addition to this one, we will be primary when:
Your Own Expenses
The claim is for your own health care expenses, unless you are
				covered by medicare and both you and your spouse are retired.
Your Spouse's Expenses
The claim is for your spouse, who is covered by medicare, and
				you are not both retired.
Your child's expenses.
The claim is for the health
				care expenses of your child who is covered by this plan; and
You are married and your birthday is earlier in the year than
				your spouse's or you are living with another individual, regardless of whether
				or not you have ever been married to that individual, and your birthday is
				earlier than that other individual's birthday. This is known as the "birthday
				rule"; or
You are separated or divorced and you have informed us of a
				court decree that makes you responsible for the child's health care expenses;
				or
There is no court decree, but you have custody of the
				child.
Other Situations
We will be primary when any other provisions of state or
				federal law require us to be.
How We Pay Claims When We Are Primary
When we are the primary plan, we will pay the benefits
				according to the terms of your contract, just as if you had no other health
				care coverage under any other plan.
How We Pay Claims When We Are Secondary
When we are knowingly the secondary plan, we will make payment
				promptly after receiving payment information from your primary plan. Your
				primary plan, and we as your secondary plan, may ask you and/or your provider
				for information in order to make payment. To expedite payment, be sure that you
				and/or your provider supply the information in a timely manner.
If the primary plan fails to pay within sixty calendar days of
				receiving all necessary information from you and your provider, you and/or your
				provider may submit your claim for us to make payment as if we were your
				primary plan. In such situations, we are required to pay claims within thirty
				calendar days of receiving your claim and the notice that your primary plan has
				not paid. This provision does not apply if medicare is the primary plan. We may
				recover from the primary plan any excess amount paid under the "right of
				recovery" provision in the plan.
If there is a difference between the amounts the plans allow,
				we will base our payment on the higher amount. However, if the primary plan has
				a contract with the provider, our combined payments will not be more than the
				amount called for in our contract or the amount called for in the contract of
				the primary plan, whichever is higher. Health maintenance organizations (HMOs)
				and health care service contractors usually have contracts with their providers
				as do some other plans.
We will determine our payment by subtracting the amount paid by
				the primary plan from the amount we would have paid if we had been primary. We
				must make payment in an amount so that, when combined with the amount paid by
				the primary plan, the total benefits paid or provided by all plans for the
				claim equal to one hundred percent of the total allowable expense (the highest
				of the amounts allowed under each plan involved) for your claim. We are not
				required to pay an amount in excess of our maximum benefit plus any accrued
				savings. If your provider negotiates reimbursement amounts with the plan(s) for
				the service provided, your provider may not bill you for any excess amounts
				once he/she has received payment for the highest of the negotiated amounts.
				When our deductible is fully credited, we will place any remaining amounts in a
				savings account to cover future claims which might not otherwise have been
				paid. For example, if the primary plan covers similar kinds of health care
				expenses, but allows expenses that we do not cover, we may pay for those
				expenses.
Questions About Coordination of Benefits?
Contact Your State Insurance
				Department
Statutory Authority:
				  RCW
				  48.02.060,
				  48.21.200,
				  48.44.050, and
				  48.46.200. 09-16-073 (Matter No. R
				  2008-20), §
										284-51-260, filed 7/30/09,
				  effective 9/1/09; 07-13-008 (Matter No. R 2005-07), §
										284-51-260, filed 6/8/07,
				  effective 7/9/07.