How Do The Primary And Secondary Parts Of My Health Insurance Work?

By Cathy Wilson Posted in Health Insurance News

Primary and secondary generally involves two separate health insurance policies. One policy is primary and the other is secondary. The primary insurance pays first and the secondary insurance pays second. Most of the time, between the two policies, the entire bill is covered if the deductibles have been met.

What Is Primary Insurance

If you are employed, primary insurance is the policy that is provided for your and your family at the work site. These are group policies that cover most everything and most have no pre-existing condition clauses. That means if you have a chronic illness such as high blood pressure, it cannot be excluded from coverage. If you are over 65, you probably have Medicare. This too is a primary insurance. that means when you go to the doctor or to the hospital the bills will go to the primary insurer to be paid first.

What Is Secondary Insurance

Secondary insurance is that health insurance you purchase in addition the the primary insurance you already have. Sometimes when people retire from work, they are able to take their company insurance with them at a reduced cost. If these people are 65 and have Medicare, then Medicare becomes their primary insurance and the insurance from the company becomes the secondary insurance. Medicare pays first and the company insurance pays second. That is why the company can offer it at a reduced rate.

What About Supplemental Insurance

We have all seen the ads on television from AARP offering supplemental insurance to Medicare. This is another form that is quite similar to secondary insurance, but a little different. A secondary insurance policy is its own insurance. It could actually be primary insurance if you didn’t already have a primary plan. It can pay for things the primary plan does not cover. Supplemental insurance cannot. Supplemental insurance can only supplement the primary plan. If a procedure or illness is not covered under the primary plan, then it is not covered under the supplemental plan either.

Related posts:

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  2. What Does Supplemental Health Insurance Entail?
  3. Mayo Clinic In Scottsdale, AZ No Longer Accepting Medicare Patients?
  4. How Much Will I Pay For Health Insurance In Retirement?
  5. What Does Lifetime Maximum Benefit Mean For Cheap Health Insurance?

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