UpDate - Vol. 12, No. 29, Page BENEFITS-2
April 29, 1993
Benefits
About coordination of benefits
Q. Who has coordination of benefits?
A. You have coordination of benefits if you have more than one insurer
providing benefits for:
- You (the employee) and/or
- Your spouse and/or
- Your dependents
Q. What does coordination of benefits do for you?
A. Coordinating benefits ensures that you receive the maximum amount of
benefits to which you are entitled. You (and/or your dependents) can
receive maximum benefits when you follow all program guidelines,
including managed care requirements. When you are covered by two
plans, it's especially important for you to know your
responsibilities. If you do not follow both plans' guidelines, you may
receive zero or reduced benefits.
Q. How do primary and secondary plans pay?
A. If you are a University employee and take coverage through the state
of Delaware group program, your University coverage is primary for
you. This means the University plan pays first for your covered
medical services.
Any reimbursement for covered services depends on the allowable
payment for the benefit and, more importantly, whether or not you
followed your plan guidelines for the particular benefit. Your
University plan will pay up to benefit maximums if you satisfy the
plan's guidelines.
Any other plan (such as your spouse's plan) which lists you as a
dependent is secondary for you. Secondary plans pick up any additional
balance for covered medical services, paying up to benefit maximums
for that plan. An added feature is that if you exceed benefit maximums
under your primary plan-- by exhausting dollar amounts, visits, or
time limitations-- and you have the same services available in your
secondary plan, the secondary plan provides benefits anew up to its
benefit maximums.
The University plan may either be primary or secondary for your
eligible dependents. According to the state's Spousal Coordination of
Benefits Policy initiated last year, eligible children and spouses may
remain on your contract as dependents.
For children?
When children are listed as dependents on two plans, the birthday rule
determines which plan is primary and which is secondary for your
children. If your birthday falls first in the calendar year, your plan
is primary for eligible children. If your spouses's birthday is first,
your spouse's plan is primary.
For spouses?
Spouses who are ineligible for other medical coverage can be covered
through the University. If a spouse has other coverage through his or
her employer, the spouse's plan pays first and the University plan
pays second. Both primary and secondary plans will pay up to benefit
maximums for eligible dependents when dependents satisfy all plan
guidelines.