Primary health insurance coverage is provided through the plan of which an individual is a member (such as an employer offered health insurance plan) or the plan under which the member has been for the greatest length of time. Secondary coverage usually occurs when you have the option of becoming a dependent under another person's plan, namely as a spouse. A secondary health insurance plan can help cover medical expenses if coverage through the primary plan runs out.
Determination
There can sometimes be a problem establishing which insurance policy is primary and which is secondary, especially in the case of a dependent child. According to Health Insurance Online, until recently, it was generally assumed that the father's policy was the child's primary insurer. Nowadays, the primary status is often determined based on which parent's birthday falls earlier in the year.
Double Recovery Provision
Free insurance advice.com says the majority of health insurance plans contain provisions which establish how primary vs. secondary health care coverage will be decided upon. This upfront determination is made to prevent "double recovery" (the potential for a patient to make a profit on his coverage).
Uses
According to Secondary Health Insurance.com, secondary health insurance is essentially a bridge that helps cover the gaps in coverage not provided by your main insurance provider. Secondary health insurance can lower your out-of-pocket medical expenses costs by providing extra health care dollars.
Additional Benefits
Secondary health insurance may help pay certain prescription medications not covered by a primary plan. It may also come in handy if primary coverage doesn't provide health care for a dependent.
In some cases, secondary health insurance may at least partially cover the expenses of alternative care that is not included in your primary care plan. This may include acupuncture, holistic treatments and chiropractic care.
Catastrophic Care
Secondary health insurance may provide peace of mind in the event a catastrophic medical event occurs. Some primary health insurance plan may not pay all of your expenses following a cancer diagnosis or in medical emergencies such as when a blood transfusion or organ transplant may be needed.
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