Having Two Health Insurance Plans – Overview
Yes, you can. It is perfectly legal for someone to have secondary health insurance. Still, it is important to understand how primary and secondary health insurance plans work.
Healthcare expenses are increasing, so many people ask if they can have two health insurance plans. If yes, then the next question is how to get the benefits of dual health insurance. Having two family or individual health insurance plans may sound expensive and tedious. In reality, the secondary insurance plan can help to cover some of your overall health insurance expenses. However, you will still need to pay two separate premiums and deductibles.
So, if you are thinking of buying two health insurance plans you should choose the one that suits your needs best.
In this article, we will help you learn how having two health insurance plans works, along with the advantages of having secondary health insurance coverage.
Who Should Buy Two Health Insurance Plans
Commonly, situations in which someone might benefit from having two health insurance plans are:
- You are under 26 years old and have coverage through your parents and employer.
- You are under 26 years old and listed as a dependent under both parents’ insurance plans.
- You have a health insurance plan and receive Medicaid coverage, too.
- You and your spouse/partner are both covered by employer-sponsored health insurance.
- You are under 26 years old and have coverage under your spouse’s and parent’s health insurance plans.
- You are less than 26 years old and have divorced parents, and are listed as beneficiaries under two separate health insurance plans.
How Do the two Health Insurance Plans Work Together
Firstly, you need to know that having two health insurance plans does not mean you have full coverage from both.
For instance, if you have to visit the doctor twice or get a prescription refilled more than once, you will only get reimbursed once.
Coordination of Benefits provision manages the two health insurance plans. Under this, there is a set rule for which health insurance policy will make the first payment. This way, it helps reduce the duplication and exploitation of benefits and increases claim processing efficiency.
Advantages of Coordination of Benefits Provision
The Coordination of benefits provision dictates which of the two health insurance companies pays first. You also need to know about primary and secondary health insurance.
- Primary Health Insurance – This provider pays first and will continue to pay up to the coverage limit. Remember, you may end up owning cost-sharing.
- Secondary Health Insurance – This insurance policy provides coverage once your primary health insurance benefits are drained. This insurance provider may cover the claim’s complete or partial cost.
Remember, primary and secondary health insurance plans will pay up to their limits. Once the secondary insurance benefits are over, you will be responsible for any remaining amount that is not covered.
So, it’s not certain that having two health insurance plans means you won’t have to pay out-of-pocket for your medical expenses. This is why insurance experts advise consumers to browse and compare different insurance plans and their aspects, such as deductibles, premiums, and copayments.
What Are the Out-Of-Pocket Expenses of Having Two Health Insurance Plans
When you have more than one health insurance plan, you must pay multiple premiums and deductibles separately for each. Your secondary insurance provider will not cover your primary insurance provider’s deductible. Besides this, you may also owe other out-of-pocket costs and cost-sharing, such as coinsurance and copayments.
Remember, when you have two health insurance plans in place, the plan rules still apply.
For instance, your primary insurance policy may work under provider network rules if you are in a Preferred Provider Organization (PPO) plan. If you visit an out-of-network healthcare provider, your primary insurance policy will not cover the costs. In addition, the secondary insurance provider is also prohibited from covering this expense, as you failed to follow the rules of your primary health insurance policy.
What Are the Benefits of Having Two Health Insurance Plans
It is advisable to have at least two separate health insurance plans. These are some of the significant benefits you may enjoy with multiple health insurance coverage:
- Dual health insurance coverage helps cover some of the additional costs you may incur. For instance, your secondary health insurance policy will cover the frequent out-of-pocket medical expenses covered under your primary insurance policy.
- If one of your health insurance policies lapses, you will not experience a coverage gap. The secondary health insurance policy immediately takes over coverage in such a situation. This way, having two health insurance policies ensures you are always covered.
- If your two health insurance plans are complementary, you may get greater benefits and more coverage. This way, any gaps left by the primary insurance are covered effectively by the secondary health insurance policy.
There are numerous benefits to having two health insurance plans in place. You not only get better insurance coverage but also end up receiving additional benefits.
It is highly advisable to have two health insurance plans. This helps to avoid several common out-of-pocket medical expenses. Having multiple health insurance plans is also beneficial as they ensure that you are always covered. Make sure to browse and compare different products from the insurance marketplace and select the insurance plans that suit your needs the most.