Secondary health insurance is coverage you can purchase separately from a medical plan. Helps cover care and services that your primary health plan may not cover. This secondary insurance can be a vision plan, a dental plan, or an accidental injury plan, to name a few. They are also called supplemental or voluntary insurance plans.
Some secondary insurance plans may pay you in cash. These plans can help you pay out-of-pocket health care costs if you are seriously ill or injured.
What are the types of secondary insurance?
Secondary health insurance, or supplemental or voluntary insurance, could refer to many types of coverage, including:
- Vision: Your medical plan will not cover vision care. A vision plan may provide coverage for routine eye exams and prescription eyeglasses or contact lenses, depending on the plan.
- Dental: A dental plan may cover preventive care, such as routine dental cleanings and some X-rays. It may also provide coverage for certain types of specialized dental care. Different types of dental plans vary in what they cover and how much you have to pay.
- Disability: Short-term and long-term disability plans are a type of secondary insurance coverage. They offer you benefits if you get injured or sick and can’t work for a while.
- Life insurance: A type of secondary insurance that makes a one-time payment to a beneficiary in the event of death.
- Accident Insurance: If you have an unexpected accident or injury, costs can add up quickly. These costs often exceed what your main medical plan covers. An accidental injury plan is a type of secondary insurance that can give you a cash payment or a lump sum payment. You can use this money to help pay for medical bills or household expenses.
- Hospital care insurance: Do you need to stay in the hospital for an unexpected medical problem? Hospital care insurance can vary in terms, but it often covers you for some serious illness or condition, such as a stroke or heart attack. These plans may provide you with a cash payment to apply toward costs.
- Cancer insurance: Some secondary insurance plans may help cover treatment costs related to some types of cancer.
- Medicare Supplement Insurance: Medicare supplement plans cover some things that Original Medicare doesn’t cover.
Is secondary insurance the same as gap insurance?
Gap insurance is a type of secondary insurance. It is sometimes called “limited benefit insurance.” Difference insurance offers cash benefits. This means it can help you pay for health care costs related to deductibles, copays, coinsurance, and other out-of-pocket medical expenses.
Where can you buy secondary health insurance?
These plans are sold through private insurance companies. There are many different types of plans, coverage, and terms.
- If you buy a health plan on your own through the Health Insurance Marketplace, you can purchase supplemental or secondary coverage through a private insurance company.
- If you get your health plan through your employer, you may have the option to include one or more secondary or supplemental plans during enrollment. If not, you can still purchase one on your own through a private insurance company.
How does secondary insurance work?
Secondary insurance plans work alongside your primary medical plan to cover differences in costs, services, or both.
- Supplemental health plans like vision, dental, and cancer insurance can provide coverage for care and services not typically covered by your medical plan. Supplemental plans often have a deductible, copay, and coinsurance. When you meet the deductible, your plan begins to share a portion of the costs with you. When you see a provider, you may have to pay a small fee, or copay, at the time of the visit.
- Lump-sum insurance plans pay you a cash amount in the event you suffer a covered illness or injury. You can usually use the money however you want. You can pay your medical bills in full, meet your deductible, or even use it to cover everyday expenses like child care, food, rent, and utilities.
- Gap insurance plans help you cover out-of-pocket costs related to health care. For example, you can use an insurance plan to cover differences to pay the deductible of your medical plan or the deductible of a dental or vision plan. It can also help you with copays and other payments you make related to coinsurance.
- You may have to pay a monthly premium on some secondary insurance plans. The cost of the premium depends on the type of plan and the coverage you choose.
- You can choose to have more than one type of secondary health insurance. These can offer you benefits for different types of care and costs if you need them.
It is important to note that most secondary health insurance does not have to comply with the provisions of the Affordable Care Act (ACA). For example, insurance companies may ask you about pre-existing conditions and may deny you coverage in some situations. Make sure you understand the terms, including exclusions and limitations, of any coverage you purchase.
Can I get secondary health insurance to cover a high deductible, copay, or coinsurance?
Yes, you can get secondary health insurance to cover out-of-pocket costs. This may include a deductible, copays, and coinsurance. This type of plan is often called a “limited benefit” plan or simply “gap insurance.”
Is it worth buying secondary health insurance?
Many secondary insurance plans have affordable monthly premiums. But the cost is only one factor. Consider the following to determine if this type of coverage is right for you:
- What is covered and what is not covered by your main medical plan?
- What kind of medical care do you think you need?
- Do you think you need care that your health plan does not cover? For example, do you need prescription glasses or do you have a chronic medical condition?
- Nobody expects to have an accident, but do you participate in extreme sports or do you suffer injuries on a regular basis?
- Do you have a high deductible health plan? If so, would you have difficulty paying it back if necessary? Remember that you must meet the deductible before your health plan takes effect to help you with the cost-sharing of coverage.
Answering these questions could help you decide if secondary coverage might be right for you.
What is not covered by secondary health insurance?
It depends on the type of plan you buy. Most plans will not cover services or treatments that are experimental or cosmetic. Read the details of any secondary health insurance plan you’re considering. There are usually limits on coverage and services.