What Is the Definition of Secondary Health Insurance?
Secondary health insurance is an insurance plan that pays for some of the costs that primary health insurance does not pay. When you purchase a secondary health plan, the supplemental coverage coordinates with your primary health plan in different ways, depending on the terms outlined in the policy.
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Types
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There are two main types of secondary health insurance--public or private. Private insurance is provided through an insurance company while public health insurance is issued through a government agency, normally at the federal or state level.
Sources
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If you have one insurance policy and your spouse or partner has another that you are covered under, your spouse or partner's policy is considered secondary health insurance. Secondary public health insurance options are available for those with a specific need, such as people with disabilities, low income families, children and the elderly.
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Cost
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Private secondary health insurance policies require payment of a premium or fee bi-monthly or monthly, every few months or annually. Public secondary health insurance is sometimes offered for free or may feature greatly reduced premiums.
Coverage
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Secondary health insurance plans may pay co-pays, deductibles and expenses not covered by your primary plan. Often, your first insurance company must provide payment for the part it will cover before your secondary health insurance will issue payment for any difference.
Considerations
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If you are shopping for a secondary health insurance plan to purchase on your own, be careful to read the entire contract carefully and ensure that you completely understand what items are not covered in your primary health insurance plan. Secondary health insurance plans are only beneficial if they provide coverage your primary insurance does not.
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