Final answer:
The process to identify the primary insurance policy for claims is called coordination of benefits, which works alongside deductibles, copayments, and coinsurance to reduce moral hazard by involving the insured in the cost-sharing of services.
Step-by-step explanation:
The process of determining which of two or more insurance policies will have the primary responsibility for processing a claim is known as coordination of benefits. This method helps prevent the payment of more benefits than the actual cost of the services and ensures that the total amount paid by all insurers does not exceed the total expenses incurred. Such a mechanism is crucial in scenarios where the insured individual has multiple insurance covers, such as being covered under their own health insurance as well as a spouse's policy.
Insurance policies often include deductibles, copayments, or coinsurance to ensure that the insured party shares some responsibility for the incurred costs, thereby reducing moral hazard. These measures are designed so that the insurance holder has a financial stake in the cost of services they utilize, promoting more conscious and economical utilization of resources.