Final answer:
The process used when an individual has dual coverage, such as TRICARE and another policy, to prevent benefit duplication is known as Coordination of Benefits (COB). Cost-sharing mechanisms like deductibles, copayments, and coinsurance reduce moral hazard by having insured parties pay some costs out-of-pocket.
Step-by-step explanation:
When Mrs. Wong has TRICARE and another insurance policy, the process that ensures there is no duplication of benefits is known as Coordination of Benefits (COB). The purpose of the COB is to establish a clear order in which the multiple insurance carriers pay claims, so that the payment from both does not exceed 100% of the covered charges. This helps keep insurance costs down for everyone by preventing overpayments.
Deductibles, copayments, and coinsurance are cost-sharing mechanisms found within insurance policies. A deductible is the amount a policyholder pays out-of-pocket before the insurance company starts covering the rest of the bill. Copayments are fixed fees paid at the time of service, and coinsurance requires the policyholder to pay a percentage of the overall costs. These mechanisms are in place to reduce moral hazard, as they ensure that policyholders have a financial stake in the cost of the care they receive.
Answer: a) Coordination of Benefits (COB)