Final answer:
The Coordination of Benefits (COB) applies when a person has more than one insurance plan, with one plan acting as the primary payer and the other as the secondary payer. Answer A) True is correct.
Step-by-step explanation:
Coordination of Benefits (COB) indeed applies when a patient is covered by more than one insurance carrier, so the correct answer to the student's question is A) True. COB is a system used by insurance companies to avoid duplicate payments for the same medical service, ensuring no more than 100% of the covered costs are paid. When a patient has multiple health insurance plans, typically, one plan is considered primary and pays claims first. The other plan, known as the secondary payer, may cover some of the remaining costs.
Part B is an optional insurance system that covers health-care costs such as physician services, medical tests, and outpatient visits. Participants handle a monthly fee, deductible charges, and copayments. The government subsidizes a significant portion of the costs, covering about three-fourths of the overall expenses.