Having two health insurance plans

Coordination of benefits is a term used to describe the process of making claims when you have two insurance policies. In this process, you set one plan as your primary and the other as your secondary.

Should you need to make a claim, the primary insurance pays out first and then the second policy kicks in where it leaves off, covering the costs that the primary plan failed to cover.

Is having two health insurance plans a good idea?

If you have access to two different plans, through your spouse or multiple workplaces, you should consider the possibility of dual coverage. If your primary plan offers sufficient coverage, then you may not need dual coverage, but a second plan can prop up a mediocre plan or tough medical situation.

Consider how having two policies impacts your budget. Is the extra coverage worth the extra costs? In some cases, there are little to no extra costs associated with the extra coverage. For example, in a marriage, both spouses may have health insurance plans through their workplace and can cover each other. This provides more complete coverage at minimal cost.

Keep in mind that it is not double insurance

You cannot make the same exact claim to both insurance providers. For example, if your primary plan covers a broken bone in full, you cannot then also bill your secondary coverage company for the full or even a partial amount. The secondary insurance can only be used to cover what the primary coverage does not.

Will having a secondary plan allow the primary provider to pay less?

The primary plan must cover everything outlined in your contract with the company. It cannot choose to pay less because the other plan will kick in and cover it. In fact, the primary coverage company does not need to know the secondary plan exists.

Are you considering having two health insurance plans? Speak with an experienced insurance broker to sort out the details.