How does subrogation relate to COB?

• A. Subrogation is the insurer's right to recover from a third party; COB governs how multiple insurers share payment; both prevent duplicate payments.
• B. COB governs rules about which provider can bill, not payments.
• C. Subrogation means the patient pays all costs.
• D. The two concepts are unrelated.

Answer: (A)

Subrogation is the insurer’s right to step into the insured’s shoes and recover the amount paid from the third party responsible for the loss. Coordination of benefits (COB) tells us how more than one insurer shares payment for the same claim, determining which plan pays first and how much each pays. These concepts connect because both are about preventing overpayment and ensuring the true source of payment is correct. COB stops multiple plans from paying more than they should for a single claim, while subrogation recovers costs from the party at fault, reducing the net cost to the insurer (and the insured) after payment has been made. If a third party is liable, the insurer may subrogate to recover what it paid; COB then helps sort out any remaining responsibility among multiple plans.