Did you know that 44 million people in the United States do not have health insurance? If you are currently looking at health plans and are wondering what is double coverage health insurance, we are here to explain it further.
Keep reading to learn more about what it is and what to do when you are covered by two insurance plans.
What Is Double Coverage Health Insurance?
Double Coverage simply put is when you have two different health insurance plans. Contrary to common belief it is legal to have two different health insurance plans.
Some people might have two policies because they are under the age of 26 and considered an adult child that receive coverage via their parent’s insurance and via their own employer.
Another way to end up with double insurance is a couple that has health insurance through their employer and through their spouse’s employer. Some kids have double coverage because each parent has them listed as a dependent under their plans.
How Does It Work?
When you have double coverage it means that one plan will become your primary and the other plan will become your secondary. The primary plan is usually the plan that you receive via your own employer.
In the case of a child, the primary plan is decided by the “birthday rule.” This rule chooses the primary insurance plan based on the parent that has their birthday come first in the calendar year.
Whenever you make a health insurance claim, your primary plan will provide you with your benefits as if you didn’t have a secondary plan. Once the primary plan takes care of the initial costs, the secondary plan kicks in and covers the rest of the costs if necessary.
If both plans are used, you will be responsible for both deductibles because your secondary plan can’t pay towards your primary plan’s deductible.
Benefits
When you are looking for coverage having two health plans might equate to saving money most of the time. It allows you to have access to both plans to take care of your healthcare needs. Usually, you won’t have to pay any out-of-pocket expenses, and if you do it will cost you less than if you had only one plan.
Another benefit is that you won’t have to worry about going through a health insurance lapse since you have two different coverages. If you change jobs or lose your job, you will still have coverage via the secondary plan.
Feeling Like a Double Coverage Pro?
Now that you know more about double coverage health insurance and its benefits, you can make an informed decision whether you want to have two policies or not. It can truly be a great way to maximize your benefits and sometimes you might receive more coverage than if you only had one plan.
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