What is secondary insurance?

Secondary insurance refers to a type of insurance coverage that provides benefits after a primary insurance policy has paid its share for a claim. This means that once the primary insurer has processed the claim and paid out benefits up to the limits of the primary policy, the secondary insurance policy can then cover additional costs that remain. This layering of coverage is particularly beneficial for individuals with high medical expenses or those seeking to minimize out-of-pocket costs.

In many cases, secondary insurance can help with expenses that the primary insurance does not fully cover, such as copayments, deductibles, or services that may be excluded by the primary policy. Thus, having secondary insurance can significantly enhance financial protection and provide a safety net for unexpected healthcare costs.