Posted on Wednesday, October 21, 2009 under: Health
Insurance can be one of the most complicated contracts you ever enter into. Making sure that you are covered should be one of the most important factors in choosing your health insurance. What happens when your plan does not cover everything that you need? Do you have to shop around for insurance that may have benefits that you would never need, that costs more? The answer is easy, get a secondary policy.
Insurance companies want to make sure that people do not profit from being ill. If someone has two insurance companies, then the person could send in reimbursement receipts to both companies and actually profit from seeing the doctor. This is not what insurance is meant for. To make it easier, some companies provide secondary insurance coverage.
Primary insurance is what the main plan that you purchase, through work or privately. It is used first, in any medical issue. Most people have this type of coverage. Not all primary insurance is the same. Some do not provide for emergency rooms,
or they have a limit to how much they will cover every year. This is where secondary insurance comes in.
Secondary insurance is used when your primary insurance does not cover your full medical expense. If your insurance only covers up to $1000, for a certain procedure, the secondary insurance can cover what you had to pay out of pocket. Secondary insurance is typically cheaper than your primary, since it is not going to be used as often. This double coverage is used to reimburse what you spend out of pocket, because your primary policy will not cover more than a certain amount.
While this may mean more paperwork for you, it could be a small price to pay for the additional security you receive. If you or your family find that you are exceeding your primary insurance limits, then secondary insurance may provide you the relief that you need. It is not difficult to understand how they work together, but be sure to review your policy so that you understand exactly what is covered and what your obligations are.