Secondary health insurance plans may help cover health care expenses not covered by a primary plan. Secondary plans usually work with a primary plan you or your spouse may get through an employer. Some people choose to purchase them in addition to an individual plan.
However, it’s good to know a few things before you purchase secondary health insurance for your family in Wisconsin.
Coordination of Benefits (COB) – When you have two policies, one must be designated as the primary plan. The plan you choose as your primary plan will affect your claim payments
Paperwork – If a claim exceeds the amount the primary plan pays, your health care provider may submit it to your secondary plan. Based on its rules, the secondary health plan will then pay all or some of the balance. Depending on the plan, you may have to submit the claim to the secondary insurance company yourself
Cost – Secondary health insurance may cover its cost if you use a lot of health services or you have a major medical crisis. For example, even platinum level primary insurance plans have deductibles and won’t cover your lost wages or household expenses while you are ill. Depending on the policy, a secondary health plan may pay cash benefits directly to its policyholders. Be aware that secondary health insurance plans may have caps on how much the company will pay out. Be sure you know the extent of the secondary coverage you are buying
Type of Coverage – Secondary health plans can be very specific. You may buy a plan that pays you a lump sum if you have an accident. Some plans pay you if you are diagnosed with cancer or other critical illnesses. Some provide short-term disability that may help you through a loss of income when you are sick
Some Benefits of a Secondary Health Plan
People who purchase secondary health plans have a range of reasons to do so.
- Depending on which type of plan you choose, your secondary health plan may help you and your family pay for the deductibles of your primary health plan
- Secondary health insurance plans may help make health care more affordable for families with high medical expenses. For example, if a family member has a chronic health issue, secondary health insurance could help ease the financial burden of continued care
- You and your spouse may both have employer-provided health insurance. Depending on the costs and your unique situation, it may make sense to keep both health plans and use one as secondary coverage
- If someone in your family has an accident or needs major medical attention, a secondary health plan may help with the cost of emergency medical care
The cost of secondary health insurance plans in Wisconsin varies depending on the policy and the circumstances of the person purchasing the policy. Often, people who are looking for this type of insurance consult a financial planner or insurance agent to help find the policy that fits their needs.
Have questions about how a secondary policy may work with a Unity primary insurance policy? Contact us at 608.644.3430 or share your question with our knowledgeable customer service staff.