What does Non-duplication of Benefits refer to in health insurance?

Non-duplication of Benefits is a provision in health insurance designed to prevent overlapping coverage in situations where an individual might have multiple health insurance policies. This feature ensures that a policyholder does not receive benefits from multiple insurers for the same expense, which could lead to excessive payments or double-dipping. Essentially, when a claim is submitted, only one of the policies will pay out benefits, up to the total allowed amount, and will coordinate with any other applicable coverage to ensure that the total reimbursement does not exceed the actual incurred expenses.

The other options do not accurately describe Non-duplication of Benefits. For instance, emergency medical services do not specifically relate to the overlap of coverage. Calculating premiums based on risk is a standard practice in underwriting and does not pertain to benefit duplication. Finally, while sharing costs between insurers can sometimes occur (such as in coordination of benefits), it does not directly capture the essence of non-duplication of benefits, which is explicitly about preventing unnecessary overlap in payouts for the same services.