The problem of overinsurance is addressed in which health insurance provision?

The issue of overinsurance, which occurs when an individual has more insurance coverage than is necessary for their needs, is primarily addressed through coordination of benefits. This provision is designed to ensure that when a policyholder is covered by multiple health insurance plans, the benefits provided by the different insurers do not exceed the total expenses incurred.

Coordination of benefits allows insurers to determine the order in which they will pay claims, preventing the policyholder from receiving payments that together exceed the total medical costs. For example, if a patient is covered by two different health plans, coordination of benefits helps to establish which insurer pays first and limits the total benefits to no more than the actual cost of the healthcare services used. This mechanism effectively mitigates the risk of overinsurance by ensuring that total reimbursement is in line with incurred healthcare expenses.

Other provisions listed do not focus specifically on managing overlapping coverage or preventing excessive insurance benefits. Minimum participation standards relate to the number of eligible individuals required to enroll in a group health plan to ensure its viability. Master contract issuance pertains to the way insurance policies are structured and issued for group insurance plans. Credit Accident and Health plans cover specific loss situations and do not focus on the coordination of benefits across multiple insurers. Thus, coordination of benefits is the most