New Rule Regarding Coordination of Benefits Takes Effect January 1, 2008.

A new rule regarding Coordination of Benefits (COB) will take effect January 1, 2008.  The new rule adds further clarification to the order of benefit determination in cases for unmarried, separated and divorced parents and dependents.  The new COB rule also requires coordinating benefits to the “higher allowable” and eliminates “credit savings”. 

A collectively bargained group may choose to delay adding this endorsement until its next collective bargaining date; however, ODS will need to know right away if that is what a group chooses to do.

A self-insured group is under no obligation to accept the new COB wording – or it may choose to delay acceptance until its next renewal date.  As is the situation today, a decision not to include a COB provision or to depart from the COB language suggested in the rule could open up the possibility for a disagreement from another plan as to order of benefit determination, which is following the new COB rule.

ODS is sending endorsements to all of its insured and self-insured plans beginning October 2007.

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