What is coordination of benefits?

Coordination of benefits (COB) refers to the method that insurance plans use to provide coverage and determine payment responsibilities for someone who is covered by more than one health plan. Medi-Cal is the payer of last resort, which means that all other health plans you may be enrolled in — such as private insurance, a group health plan, or a managed care organization — are legally required to pay for their part of any claims before Medi-Cal will pay anything.

To ensure that insurance companies and other third parties pay their share, the state collects information on any pre-existing coverage whenever someone applies for medical assistance. If a family applies for Medi-Cal for their child, they must also show proof of any insurance or other third party coverage. For more information, check out our article Making the Most of Medi-Cal.