Secondary Insurance

What is Secondary Insurance?

Secondary insurance is a supplemental health plan that covers expenses not fully paid by an employee’s primary insurance. When a claim is filed, the primary insurer processes it first, and any remaining eligible costs are then submitted to the secondary insurer for additional reimbursement.

Why Secondary Insurance Matters

Employees may hold secondary insurance through a spouse’s employer plan, a parent’s policy, or a separate policy purchased individually. Coordination of benefits rules determine how the two plans share costs and prevent duplicate payments that would exceed the total amount of the claim.

For HR professionals, understanding secondary insurance is important when administering benefits enrollment, resolving employee claims questions, and ensuring accurate coordination between carriers. Offering clarity on how primary and secondary coverage interact helps employees make informed decisions during open enrollment.