Secondary Health Coverage

Secondary Health Coverage

 

While most people are familiar with primary health insurance, some may not know that they can also purchase separate secondary health coverage. There are several types of secondary insurance plans that can cover a variety of issues your primary health plan may not. The following article covers different types of secondary health coverage, where you can get it, why you may want it and how this insurance works.

 

Types of Secondary Health Coverage

 

People generally select secondary health insurance based on their individual needs. Some types of secondary coverage include:

 

 

Where to Buy Secondary Health Coverage

 

Private insurance companies sell secondary health coverage. If you get your primary health plan through your employer, you may be able to add secondary insurance during open enrollment. Speak with your HR department for more information about the options available to you. Alternatively, if you pay for your primary health plan on your own or your employer does not provide the option to add secondary insurance, you can purchase such coverage through a private insurance company.

 

Why People Purchase Secondary Health Coverage

 

People may choose to purchase secondary health insurance for many reasons. In some cases, a primary health plan may not cover very much, or it may not cover a person’s specific medical needs. For example, if you have glasses, getting a vision plan may make sense for you since you know you will need to make more frequent trips to the eye doctor; however, primary health plans generally do not cover those visits. For others who frequently participate in high-risk activities, it may also make sense to purchase accident or life insurance. Ultimately, the reasons people elect to purchase secondary health insurance depend on their individual needs and the current coverage their primary plans provide.

 

How Secondary Health Coverage Works

 

Secondary health insurance compliments your primary plan by helping cover specific services, remaining costs or both. You may be required to pay a monthly premium for secondary coverage. This will depend on the type of plan you choose.

 

When it comes to supplemental plans, such as vision and dental insurance, they operate similarly to your primary health coverage in the sense that they generally have deductibles you need to meet before they will cover additional costs. As for gap insurance, its purpose is to help you cover out-of-pocket costs related to your health care.

 

Related costs generally include your primary or secondary health plan’s deductible, copays and payments you make toward coinsurance. Lastly, some plans—known as lump sum plans—can offer you a cash amount after you experience a covered illness or injury. Generally, you can use the money in various ways and are not limited to applying it to your medical bills.

 

Summary

 

Secondary health coverage can provide you added benefits that your primary health plan may not. Whether you need a supplemental plan (e.g., vision or dental) or life insurance, there are many different secondary coverage options. The type of secondary insurance that is right for you will ultimately depend on your individual needs and what your primary health plan currently covers.

 

For more information about secondary health coverage, contact your HR department.