Health Insurance Secondary - When Would You Ever Actually Need Secondary Health Insurance?

If you and your spouse both work for companies that offer medical insurance, it is theoretically possible for family members to be enrolled in both plans simultaneously. When a person has dual coverage in this manner, it is known as secondary health insurance.<br><br>Health insurance, secondary in nature, is oftentimes redundant. In other words, you have overlapping coverage for the same things under both plans. So when would you ever actually need secondary health insurance? Isn't it a waste of money to spend money every month on two monthly premiums? <br><br>One reason might be if, for whatever reason, one or more members of your family needs more coverage than what is offered through your provider. For example, let's say you have a $500 annual benefit for prescription drugs per year for one person on plan A, and another $500 annual benefit for prescription drugs per person on plan B. <br><br>Now let's suppose that you use up all $500 of your prescription drug benefit under plan A early on during the year. If you didn't have a secondary provider, you would be on your own to pay the full retail price for your prescriptions for the rest of the year. Once your primary health benefits are exhausted, your health insurance secondary provider (plan B) could kick in and provide you an additional $500 worth of prescription drug coverage for the remainder of the year. <br><br>So why is it that most insurance companies require you to disclose any health insurance secondary plans you may be covered under? They do this to prevent insurance fraud, which can occur in the form of seeking to make a profit by submitting claims for reimbursement from both insurance companies at the same time for the same medical benefit.

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