CPB (Certified Professional Biller) Certification Practice Exam

Which term is represented by the acronym COB in the medical billing field?

1. Ceterifed Professional Coder

2. Consolidated Omnibus Budget Reconciliation Act of 1985

3. Customized Sub-Capitation Plan

4. CHAMPUS Reform Initative

The correct answer is: Consolidated Omnibus Budget Reconciliation Act of 1985

The acronym COB in the medical billing field stands for "Coordination of Benefits." This process is essential for determining the order in which multiple insurance policies pay for a claim when a patient is covered by more than one health insurance plan. The goal of COB is to prevent overinsurance, ensuring that the total reimbursement does not exceed the cost of the medical service provided. The correct answer aligns with this definition as it highlights the critical importance of understanding how various insurance plans interact to accurately process claims and avoid payment discrepancies. While the Consolidated Omnibus Budget Reconciliation Act of 1985 is a significant piece of legislation affecting health care coverage and benefits, it is not what the acronym COB directly represents in the context of coordination between multiple insurance payers. The other terms provided in the choices do not relate to the coordination of benefits in medical billing.