Question

Fund life & health insurance

Explain why this sentence is false.

The coordination of benefits gives the employer or insurer that pays a claim the rights that a covered employee or insured might have against a third party.

Answer 1

Answer-

This statement is false as the  tthe coordination of benefits is done by avoiding duplicate payments by making sure the two plans are not paying more than the total amount of the claim. An individual needs to establish which plan is primary and which plan is secondary and the plan that pays first and the plan that pays the remaining balance after ones share of the costs is deducted.

The claims are verified and the coordination of benefits does not gives the employer or insurer to claim the rights that a covered employee or insured might have against a third party.