How Does It Work If You Have Two Health Insurance Policies? 
For someone covered by two or more group health insurance policies , the term COB , short for coordination of benefits , would be used in such a scenario . Group insurance was designed to cover major medical expenses ; however , it was never intended to pay in excess of 100 % of incurred charges . For this reason , coordination of benefitswas established as a method by which two or more carriers or plans could coordinate their respective benefits so the total benefit paid does not exceed 100 % of the total allowable expenses incurred . In most states , thecoordination of benefitsregulations specifies how benefits are to be coordinated by insurance companies issuing group policies in the state . In most states , individual health insurance policies do not have to comply with thecoordination of benefitsrules . Thosepolicies may have special provisions in place if you have more than one policy . You should review your individual health insurance policy to see how it pays if other insurance is involved . 