What is the primary goal of the coordination of benefits provision?

The primary goal of the coordination of benefits provision is to avoid duplication of benefits and overinsurance. This mechanism is essential in situations where an individual has coverage from multiple health insurance plans. By coordinating benefits, insurers can ensure that the total amount paid by all policies does not exceed the actual medical expenses incurred, thereby preventing any one individual from receiving more than their eligible healthcare costs.

When multiple policies are in effect, coordination of benefits helps determine which policy is primary and which is secondary, streamlining the claim process. This is crucial for maintaining fairness in the insurance system and ensuring that resources are allocated appropriately without overwhelming the system with potential overpayments.

The other answer choices, while they might touch on related themes, do not accurately capture the central aim of this provision. Maximizing benefits could lead to excessive payouts which contradicts the purpose of controlling costs and managing benefits effectively. Simplifying the claims process can be a secondary effect of coordination of benefits but is not its primary goal. Increasing premium rates is unrelated to coordination of benefits, as this provision primarily focuses on managing existing policies rather than impacting premiums directly.