How do secondary insurance claims work?
Once the primary payer covers its portion of the claim, secondary insurance pays a portion. Oftentimes a patient has a second plan because they are employed but also have a government plan like Medicare, Medicaid or TRICARE. Sometimes the second plan is from a spouse or a parent with insurance.
When billing for primary and secondary claims, the primary claim is sent before the secondary claim. Once the primary payer has remitted on the primary claim, you will then be able to send the claim on to the secondary payer.
Your primary insurance will typically be billed first unless there is a rule under your Coordination of Benefits provision that decides which insurance pays first. Once your primary insurance has done its part, you can then send the bill on to your secondary insurance.
Secondary payers require specific information on secondary claims to determine how a primary claim was processed. This information is listed on the primary claim's Payment Report, Explanation of Benefits (EOB), or Electronic Remittance Advice (ERA).
You can use it to pay for out-of-pocket medical costs such as deductibles and coinsurance, or toward non-medical expenses such as rent and utilities.
The insurance that pays first (primary payer) pays up to the limits of its coverage. The one that pays second (secondary payer) only pays if there are costs the primary insurer didn't cover. The secondary payer (which may be Medicare) may not pay all the remaining costs.
Primary insurance pays first for your medical bills. Secondary insurance pays after your primary insurance. Usually, secondary insurance pays some or all of the costs left after the primary insurer has paid (e.g., deductibles, copayments, coinsurances).
The insurance that pays first is called the primary payer. The primary payer pays up to the limits of its coverage. The insurance that pays second is called the secondary payer. The secondary payer only pays if there are costs the primary insurer didn't cover.
To determine which plan is primary, which means the insurer pays for covered services first according to the benefits provided by the plan. The other insurer pays secondary, which means it pays the remaining unpaid balance according to the benefits provided by its plan.
When Can You Bill Secondary Insurance Claims? You can submit a claim to secondary insurance once you've billed the primary insurance and received payment (remittance). It's important to remember you can't bill both primary and secondary insurance at the same time.
What is the secondary payer rule?
Medicare Secondary Payer (MSP) is the term used by Medicare when Medicare is not responsible for paying first. In other words, any “liability insurance policy or plan,” which includes self-insured plans, must be billed first, prior to any claim presented to Medicare.
A credit balance results when the secondary payer allows and pays a higher amount than the primary insurance carrier. This credit balance is not actually an overpayment. The amount contractually adjusted off from the primary insurance carrier was more than needed, based on the secondary insurance carrier's payment.
Receive the Explanation of Benefits from the Primary Insurance Company (payment or denial) and note the allowable amount, the patient responsibility, and any adjustments for your contracted rate. Make a copy of it for the secondary insurance company (redact names of any other clients that might be on the EOB!)
It will likely require you to pay more for health insurance services since one insurer will pay at the lower out-of-network rate or won't pay at all. Multiple insurance plans also mean you likely have two premiums, deductibles, coinsurance and out-of-pocket costs.
Multiple plans can offset more costs, increasing your savings when receiving healthcare. For example, your primary insurance might only cover 80% of a specific procedure. If your secondary insurance covers the rest, you bear no cost.
Concurrent insurance is when two insurance policies are held to cover the same risks over the same time period. Concurrent insurance usually includes a primary policy, with the second policy meant to act as excess coverage.
If the primary insurer has paid their portion of the bill and there's still a balance, you should submit the claim to the secondary insurance company before billing the patient. If a patient has more than one insurance plan, it's important to confirm which one is their primary coverage before submitting a claim.
File a Lawsuit
Negotiating with the insurance company should be your first step in trying to get a larger insurance settlement. However, it may not be successful, and you should be prepared for that outcome. You may need to take your case to court if you cannot negotiate a settlement.
If your health insurer refuses to pay a claim or ends your coverage, you have the right to appeal the company's decision and have it reviewed by a third party. You can ask that your insurance company reconsider its decision. Insurers have to tell you why they've denied your claim or ended your coverage.
When a patient has both primary and secondary insurance, and both are to be billed for a specific claim, this is called "coordination of benefits" (COB). The COB process determines which insurance plan is responsible for paying the first, second, and any remaining balances.
Who pays if you buy insurance directly from a marketplace?
The marketplace will pay your health insurance company for part of the premium, and you will pay the rest.
The birthday rule applies when a child is covered under both parents' health plans. Primary coverage comes from the plan of the parent whose birthday (month and day only) comes first in the year, with the other parent's health plan providing secondary coverage.
Usually, your employer's plan is primary. If you also are covered by your spouse's plan, that plan is usually secondary. There are other rules for many other situations. A special case may come up if you have both medical and dental insurance, and you have a procedure such as oral surgery.
Health insurance companies often ask if you have other insurance because it helps them determine which insurance plan is the primary payer of your medical expenses. When you have multiple insurance policies, one policy is designated as the primary insurance, and the other policy is designated as secondary insurance.
Each type of coverage is called a “payer .” When there's more than one payer, “coordination of benefits” rules decide who pays first . The “primary payer” pays what it owes on your bills first, then you or your health care provider sends the rest to the “secondary payer” (supplemental payer) to pay .
References
- https://www.sanitas.com/en/private-customers/services/contact-and-help/dictionary/double-insurance.html
- https://www.ehealthinsurance.com/medicare/enrollment/should-i-apply-for-medicare-or-keep-my-employers-health-plan/
- https://www.cbsnews.com/news/is-medicare-supplemental-insurance-worth-it/
- https://www.ridewithloop.com/blog/duplicate-car-insurance-coverage-explained
- https://smartasset.com/insurance/pros-and-cons-of-having-two-health-insurance
- https://www.marketwatch.com/guides/insurance-services/is-switching-car-insurance-bad/
- https://www.cellinolaw.com/car-accident-lawyer/insurance-is-not-paying-enough-for-a-totaled-car/
- https://www.humana.com/medicare/medicare-resources/hmo-vs-ppo
- https://www1.deltadentalins.com/brokers/insider-update/2023/dual-coverage.html
- https://support.therapyappointment.com/article/641-billing-secondary-claims
- https://www.fairhealthconsumer.org/insurance-basics/your-health-plan/having-more-than-one-health-plan
- https://www.medicare.gov/basics/costs/pay-premiums
- https://www.thebalancemoney.com/coordination-of-benefits-2645754
- https://www.bamboohr.com/resources/hr-glossary/secondary-insurance
- https://www.medicare.gov/basics/your-medicare-rights/your-protections
- https://clinicalresearch.ctsi.ufl.edu/resources/policies/cms-medicare-secondary-payer-rule-and-mandatory-reporting-provisions/
- https://www.allianztravelinsurance.com/travel/rental-cars/credit-card-rental-car-insurance.htm
- https://udrc.lkouniv.ac.in/Content/DepartmentContent/SM_7ac7a5a6-29fb-41dd-bb97-a852241de68e_30.pdf
- https://www.ehealthinsurance.com/medicare/coverage/will-secondary-insurance-pay-medicare-deductible-or-coinsurance/
- https://therapybrands.com/blog/how-to-streamline-the-secondary-insurance-billing-process/
- https://www.quickquote.com/how-much-does-a-100000-life-insurance-policy-cost/
- https://www.forbes.com/health/medicare/best-medicare-supplement-providers/
- https://www.medicareinteractive.org/get-answers/coordinating-medicare-with-other-types-of-insurance/coordination-of-benefits-basics/primary-and-secondary-payers
- https://www.ngsmedicare.com/medicare-secondary-payer-payment-calculator
- https://www.cms.gov/medicare/coordination-benefits-recovery/overview/coordination-benefits
- https://www.beckerspayer.com/policy-updates/the-2-midnight-rule-and-medicare-advantage-6-things-to-know.html
- https://www.insuranceproaz.com/benefits-of-being-the-primary-insured
- https://www.medicare.gov/what-medicare-covers/what-isnt-covered-by-part-a-part-b
- https://www.procore.com/library/first-party-vs-third-party-insurance
- https://www.insuranceopedia.com/definition/3618/primary-insurer
- https://www.libertyhomeguard.com/glossary/duplicate-coverage-in-home-warranty/
- https://www.valuepenguin.com/is-medicare-free
- https://medicare.fcso.com/FAQs/138142.asp
- https://www.medicare.gov/basics/costs/medicare-costs
- https://www.answerfinancial.com/insurance-center/insurance-terms/primary-insured-definition/
- https://www.metlife.com/stories/benefits/can-you-have-two-health-insurances/
- https://www.investopedia.com/articles/pf/08/life-insurance-cash-in.asp
- https://www.policygenius.com/life-insurance/can-you-have-multiple-life-insurance-policies/
- https://www.quickquote.com/how-much-life-insurance-do-you-need/
- https://www.cigna.com/knowledge-center/what-is-secondary-health-insurance
- https://www.medicare.gov/supplements-other-insurance/how-medicare-works-with-other-insurance
- https://brainly.com/question/31537342
- https://gentem.com/blog/when-and-how-to-bill-secondary-insurance-claims/
- https://www.aetna.com/health-guide/secondary-health-insurance.html
- https://www.ehealthinsurance.com/medicare/parts/medicare-as-a-secondary-payer/
- https://www.ehealthinsurance.com/resources/individual-and-family/can-you-have-two-health-insurance-plans
- https://www.verywellhealth.com/health-insurance-birthday-rule-5114133
- https://www.nerdwallet.com/article/insurance/medicare/best-medigap-plan-g-companies
- https://www.aarp.org/health/medicare-qa-tool/what-is-medigap-insurance.html
- https://familiesusa.org/wp-content/uploads/2019/08/Getting_Help_100116.pdf
- https://www.sdccd.edu/docs/HumanResources/benefits/forms/active_employee_plans/Dual%20Health%20Insurance%20FAQ's.pdf
- https://www.verywellhealth.com/should-you-buy-supplemental-health-insurance-1738638
- https://www.medicare.gov/basics/get-started-with-medicare/medicare-basics/working-past-65
- https://capforge.com/double-insurance-what-you-need-to-know/
- https://www.insure.com/health-insurance/primary-health-plans.html
- https://www.medicare.gov/what-medicare-covers/your-medicare-coverage-choices
- https://myclientsplus.com/secondary-insurance-explained/
- https://qz.com/advisor/auto-insurance/can-you-have-two-car-insurance-policies/
- https://support.simplepractice.com/hc/en-us/articles/360042545052-Filing-secondary-insurance-claims
- https://www.cms.gov/medicare/coordination-benefits-recovery/beneficiary-services/reporting-other-health-insurance
- https://www.carecloud.com/continuum/how-to-handle-overpayments-patients-payers-and-paybacks/
- https://www.bajajfinserv.in/insurance/principle-of-subrogation-in-insurance
- https://pedsone.com/collect-copays-patients-2-insurances/
- https://www.quora.com/Why-do-health-insurance-companies-continue-to-ask-if-you-have-other-insurance
- https://www.bankrate.com/insurance/life-insurance/rates-by-age/
- https://www.ehealthinsurance.com/resources/individual-and-family/coordination-of-benefits
- https://www.cms.gov/cms-guide-medical-technology-companies-and-other-interested-parties/payment
- https://www.ehealthinsurance.com/medicare/cost/why-doesnt-medicare-reimbursement-cover-100-of-my-medical-bills/
- https://mycoitracking.com/what-is-the-difference-between-an-insurance-certificate-holder-and-an-additional-insured/
- https://www.marketwatch.com/guides/insurance-services/more-than-one-life-insurance-policy/
- https://www.trinet.com/insights/can-you-have-two-health-insurances
- https://www.forbes.com/advisor/car-insurance/best-car-insurance-companies/
- https://www.ehealthinsurance.com/resources/individual-and-family/birthday-rule
- https://www.medicare.gov/publications/02179-Medicare-and-other-health-benefits-your-guide-to-who-pays-first.pdf
- https://www.caranddriver.com/car-insurance/a35863790/can-you-have-two-car-insurance-policies/
- https://www.kff.org/medicare/issue-brief/a-snapshot-of-sources-of-coverage-among-medicare-beneficiaries/
- https://www.nerdwallet.com/article/insurance/best-life-insurance-companies
- https://www.guardianlife.com/life-insurance/multiple-policies
- https://www.forbes.com/advisor/health-insurance/secondary-health-insurance/
- https://www.thebalancemoney.com/what-are-insurance-policy-limits-5192903
- https://www.humana.com/medicare/medicare-resources/is-medicare-primary-or-secondary
- https://www.practicesol.com/single-post/primary-and-secondary-insurances
- https://www.bankrate.com/insurance/life-insurance/lying-on-application/
- https://americanfidelity.com/blog/supplemental/how-supplemental-insurance-helps/
- https://www.investopedia.com/terms/c/concurrent-insurance.asp
- https://www.fastpayhealth.com/blog/claim-denial-reason-codes
- https://www.hsbc.com/news-and-views/news/hsbc-news-archive/our-record-breaking-life-insurance-policy
- https://www.medicareinteractive.org/glossary/secondary-insurance
- https://www.healthcare.gov/appeal-insurance-company-decision/
- https://www.bimakavach.com/blog/what-is-double-insurance-and-how-does-it-work/
- https://www.forbes.com/advisor/health-insurance/how-long-can-you-stay-on-parents-insurance/