Coordination of benefits (COB): A process that payers use to determine which benefits should be applied when an enrollee has coverage from multiple payers.
Medicare MCOs and Private Payers: Are COB Costs Any DifferentOn average, health plans have reported that the administrative costs surrounding coordination of benefits equal about 12% of plan premiums. According to Medicare, public payer costs in this area are much lower – around 3%. However, a 2018 AHIP infographic indicates that Medicare administrative costs are much higher, around 13%. We can reasonably assume that Medicaid MCOs and private health plans are paying about the same in administrative costs. Reducing the costs associated with coordination of benefits often means reducing administrative inefficiencies. The burden of cumbersome, manual admin processes lead MCOs to miss timely provider payments, tightening their provider network and placing an unnecessary burden on patients and providers.
How Medicare (and Medicaid) MCOs Can Reduce Administrative Costs in COBAt ClarisHealth, our work with managed care organizations has given us insight into how coordination of benefits costs can be reduced. Streamlining your COB costs essentially means improving efficiencies in your administrative processes. Here are 5 ways to accomplish that goal:
1. Think Big Picture
3. Go Paperless
4. Automate Tasks
5. Outsource to Experts
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