Can You Have Two Health Insurance Plans?
Yes. You can have two health insurance coverage! Having two health insurance plans is perfectly legal, and most individuals have two under certain circumstances.
Why People Have Two Plans?
There are a few different reasons why individuals might have two health insurance plans:
- You are an adult child (under the age of 26) who obtains coverage through their parents and employer
- You are a couple who both have health insurance through their respective employers
- You are a child with two parents with health insurance and have you as a dependent under their separate coverages.
How Having Two Health Insurance Plans Work?
Having two insurance plans does not mean you get reimbursed twice for a physician’s visit or two bottles of medication.
Coordination of benefits is the process in which an individual with two health insurance plans can receive coverage.
This works because one insurance policy becomes your primary, and one plan becomes your secondary. Your primary coverage will be the plan that you receive through your employer.
If you are a kid with two parents who insure them under their own family plans, your primary is decided by something known as “the birthday rule.” Your primary insurance coverage will come from whichever parent whose birthday comes first in the calendar year.
When it comes to a child covered by respective family health insurance, use the birthday rule to determine their primary and secondary coverage.
If you make a health insurance claim, your primary insurance plan will act as if you had no secondary plan and offer you with your benefits. Your secondary insurance plan kicks in and covers the rest of the cost if it is covered and obligatory.
Bear in mind that you will have to pay both deductibles for your plans. Your secondary coverage cannot pay toward your primary’s deductible.
Irrespective of whether you have two plans, health insurance carriers still follow the same rules concerning how they pay for the care you receive. This means that even though you have two coverages, you could still end up paying an out-of-pocket cost.
You might have to pay an out-of-pocket cost if you received care from a provider charging more than what your insurance carrier (s) may consider reasonable or customary. Because your carrier only pays for what they believe to be a reasonable cost, your secondary plan would not be necessitated to pay for something if they felt it was unreasonable.
Advantages of Dual Coverage
Having two health insurance plans typically means saving money. Having dual coverage lets persons have access to both of their policies to cover their healthcare costs.
The combined coverage cannot exceed 100% of the cost; nevertheless, this means that people with two coverages may not have to pay out-of-pocket expenses, or if they do, it is less than what they would have to pay with only one health insurance.
Also, because you have coverage through your parent’s plan or your partner’s plan, you do not have to worry about going uninsured if you lose your employment and the health insurance that comes with it or opt to change jobs.
Should You Possess Two Health Insurance Plans?
Having two health insurance plans is the best way to maximize benefits and potentially receive more coverage if you only have one coverage.
You can stay covered under your parent’s or spouse’s health insurance plan at little to no cost to them (some employer-sponsored plans provide family coverage at a flat rate, not per dependent).
If you think you could save money by waiving your access to one plan, contemplate how the coordination of benefits functions, the medical care you have received in the past, and the care you may require in the future.
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