When you think that the life expectancy of people is less than it used to be fifty years ago, you’ll realize the importance of health insurance. While health insurance isn’t necessarily a sign that you will die or suffer a terminal illness soon, it’s a necessary protection against hefty hospital bills. However, navigating the world of health insurance can be quite tough – especially when you have more than one health insurance coverage. If you’re like most Americans, then you’ll have a single health insurance plan – your primary health insurance package. But many people are confused about having another health plan. Some even wonder if it’s possible.
So, can you have two health insurance? Yes, you will be allowed to have two health insurance plans -but only under specific scenarios. The second plan that you decide to take up will be referred to as a secondary health insurance plan. This plan is completely legal and will not result in any penalties. But it would help if you learned more about it to coordinate the benefits of both policies successfully. If you’ve never had two health insurance coverages, this article is for you. It will carefully explain everything that it takes to have dual health insurance coverage and how to enjoy benefits from both of them.
Why would Someone have Two Health Insurance Plans?
As mentioned earlier, a person is allowed to have under specific conditions. Often, some of these scenarios are caused by circumstances beyond your control. The following are conditions that may cause you to have more than one health insurance coverage;
- You’re younger than 26 years old and currently enjoy coverage under your employer and your parents.
- You’re married, and both of you have active insurance coverages from your employers.
- You are younger than 26 years old with parents who have individual health insurance plans, and both of them have listed you as a dependent for their respective projects.
- You’re younger than 26 years with divorced parents who have separate health insurance plans, and both of them have listed you as a dependent for their respective projects.
- You’re younger than 26, married, and covered by your spouse’s and parents’ plans.
- You have booked health insurance coverage along with Medicaid coverage.
How Does Having More Than One Insurance Plan Work?
Now, you should know that having more than a single health insurance coverage does not automatically translate to you getting compensated twice anytime you visit the hospital. It also doesn’t mean that you’ll gain access to extra bottles or packets of medication. If you have two health insurance, the total amount of coverage will not exceed 100% of the overall cost. But in this type of scenario, you would need to coordinate these plans properly to determine which of them Is responsible for a particular part of your claim. Both insurance providers will work together and reach an agreement to prevent anyone from overpaying or underpaying.
To properly understand the benefits that you’ll enjoy under each insurance plan, we need to take a detailed look at the meaning of primary and secondary insurance.
- Primary Insurance – This is that insurance plan that swings into action first and settles the claim up to your coverage limits. However, you may still owe cost-sharing after this initial coverage.
- Secondary Insurance – This is the insurance plan that settles any outstanding bills after the primary insurance has paid the claim. Your secondary insurance may cover all or part of the tremendous cost, depending on the level or amount of coverage that you’ve signed up for.
Now, you’re aware of how the primary and secondary insurance will settle your hospital bill – in case you’re hospitalized. However, it’s crucial to take note of the fact that both insurance plans will only cover your claim up to the limits of any package that you’re eligible for. Depending on the overall value of the medical bill, you may be required to settle any outstanding bill that your insurance doesn’t compensate. This means that you may still have to pay some costs out of your pocket, even with multiple health insurance coverages.
When does a Health Plan Become Primary Insurance?
If you hold two health insurance packages, your main coverage is primary insurance. Often, the direct health insurance plan is the coverage that you receive from your employer. However, this may not hold for company retirees on Medicare.
For a person younger than 26 years, who has a personal plan combined with another plan from one of their parents, the child’s insurance plan is the primary insurance. Also, if you’re younger than 26 years old and covered by the health insurance of both your parents, the preliminary plan would be the one that was registered with the earliest birthday age – without considering the age of the parents themselves.
Furthermore, people who have a registered Medicare plan and their employer’s health coverage. Medicare will be treated as the primary health plan if fewer than 100 employees. But if there are over 100 staff, the employer’s health coverage will be considered first. But, when the person retires with an active Medicare and employer’s health coverage, the company will refer such an individual to view the Medicare insurance plan first.
When does a Health Plan become Secondary Insurance?
Identifying secondary insurance isn’t difficult. When you’ve placed your primary insurance, another one can be considered secondary insurance coverage. The insurance plan settles outstanding bills after the direct insurance is done.
How do you Handle Two Health Plans?
When you have two health plans, you will be required to pay two premiums and be subject to two separate deductibles annually. Whenever you need both intend to contend hospital expenses, you must pay the deductibles for each health insurance plan – primary and secondary. Besides these initial costs, a person may have to pay two types of out-of-insurance known as copayments or coinsurance.
What are the Pros and Cons of Having Double Health Coverage?
There are many benefits of having double health coverage. When you have double health coverage, it will be easier to cater to your medical expenses and handle the hefty medical bills. If both plans are coordinated properly, you’ll be able to avoid out-of-the-pocket costs as much as possible. You can design both health coverages to cover different aspects of your health bill. As a result, you will have more overall coverage to enjoy. Having double health insurance will also give you peace of mind. So, if you lose a particular range, you will have something to fall back on.
However, you will be subject to two monthly premiums and annual deductibles. Depending on your coverage options or plans, double charges can be quite significant. You will also be dealing with different insurance providers with other policies. Therefore, you’ll need to stay informed about the policies of both companies to avoid mistakes that will nullify your reimbursement or compensation. If both health plans charge similar rates and offer identical coverage, you may not receive as many financial benefits as you expect. Also, you’ll need to inform your doctor(s) about the rules or requirements of both plans.
Conclusion
Without any doubt, it’s possible to own double health insurance plans. While one of them will be considered to be primary and the other secondary, both of them will work together to cover your hospital expenses. You need to understand that the policies and requirements of one health plan do not affect the other in any way. As a result, they should be treated individually. If you wish to get double health insurance or already have two plans, it’s crucial to learn all you can about both programs before you have to file for a claim.