Having two health insurance plans can offer some benefits, but there are also potential drawbacks to consider. The main benefit of having two health insurance plans is that they can provide additional coverage for medical expenses that one plan may not cover. This can help reduce out-of-pocket expenses for the policyholder.
Here are some of the pros and cons of having two health insurance plans:
Pros:
- Additional coverage: If one insurance plan doesn’t cover certain medical expenses, having a second insurance plan can provide additional coverage.
- Reduced out-of-pocket expenses: With two insurance plans, the policyholder may be able to reduce their out-of-pocket expenses for medical bills.
- Greater choice of healthcare providers: Some healthcare providers may only accept certain insurance plans. With two insurance plans, the policyholder may have access to a wider range of healthcare providers.
Cons:
- Increased cost: Having two health insurance plans may mean paying double premiums, which can be costly.
- Confusing coordination of benefits: Coordinating benefits between two insurance plans can be confusing, and it may take time to figure out which plan pays for which medical expenses.
- Potential for delays in processing claims: With two insurance plans, there is a greater chance that claims may be delayed or denied, which can be frustrating for the policyholder.
Primary and secondary insurance rules:
When a person has two health insurance plans, one plan is designated as the primary plan, and the other is the secondary plan. The primary plan is responsible for paying for medical expenses first, up to the plan’s coverage limit. The secondary plan only pays for medical expenses that the primary plan does not cover.
The coordination of the benefits process helps determine which plan is primary and which is secondary. The primary plan is typically the plan that covers the policyholder as an employee or member, while the second plan is usually a plan that covers the policyholder as a dependent or spouse.
In general, having two health insurance plans can be beneficial if the policyholder has high medical expenses and the second plan provides additional coverage. However, it’s important to carefully consider the costs and potential coordination issues before deciding to have two health insurance plans.