Secondary Insurance

What is Secondary Insurance? 

Secondary insurance is also known as Supplemental Insurance, and is a separate plan that offers additional benefits. This could include additional health insurance through a spouse’s medical plan. More often, it is a different type of plan that has been purchased to extend coverage.

Secondary insurance can provide financial protection if the main insurance plan at a company has limitations, or if an employee would prefer additional coverage. 

Many individuals apply for at least some form of secondary insurance, which could include dental insurance, life insurance, or other supplementary plans.

How does Secondary Insurance work?

Having multiple insurance policies means paying any applicable premiums and deductibles for both plans. The secondary insurance won't pay toward the primary's deductible.

Having access to two health plans can be good when making health care claims. Having two health plans can increase the amount of coverage received. However, primary insurance and secondary insurance can be classified differently depending on an employee's circumstances.

Here are some examples to look out for:

• Married couples- If a wife has a health plan with her employer, and her husband's plan also covers her, then the wife's employer is considered the primary insurer. Her husband's plan is considered secondary. 

• Dependent individuals/children under 26 - Children can remain on their parents' health plan before they turn 26 years old. However, if an employer provides the individual with a health plan, then the employer's health plan is primary, while the family's plan is secondary.

Conclusion

It’s important to understand how the particular insurance plans of the organization work together in order to get the most coverage and be able to convey this information to employees. For more detailed information, please consult the benefits carrier who administers the insurance plans.