13.1.1 Policy Considerations for Coordination of Benefits

• Jurisdiction: Arizona

. Two types of arguments support benefits coordination as an alternative to allowing claimants to cumulate benefits: (1) economic goals relating to the added costs of multiple systems over coordination; and (2) risk distribution arguments associated with the philosophy of insurance support minimizing benefits duplication.

Particularly during an inflationary period, welfare cost containment is important. Benefits coordination helps protect against over-recovery. The object is not to bar receipt of payments or services from more than a single source, but to deal with situations in which overlaps in coverage provide aggregate benefits exceeding actual income loss and medical expenses of the worker or dependent family. Insurance costs might be saved when multiple payments are reduced. When benefits payments are made by a...