It is possible to own more than 1 insurance policy. In fact, it can be very much beneficial for you. Doing this will enable you to add another layer of protection for your medical needs. If you already have one and are thinking of adding another insurance policy, here is a little guide on how you can effectively use both.
Coordination of Benefits
Each insurance coverage you have is called a “payer”. When you have more than 1 payer, then “coordination of benefits” will be followed. This is a set of rules or guide to know who will pay for each item. It organizes your payers to a primary payer, secondary payer, and sometimes a third payer. Each payer, based on designation will cover certain parts of your claim.
Designation of Payers
The primary payer will be the first to cover your claim. It will pay until the limit of your insurance policy.
The secondary payer is the second in line to cover costs not covered by the primary payer. This is in the event that the primary payer does not cover all of the items in the bill or the bill is above the limit.
It is also important to note that the secondary payer may not pay for all costs that were not covered by the primary payer. It is still subject to the rules of your policy. In the event a primary payer does not pay the claim timely, your secondary payer may cover the costs on a conditional payment.
What is a conditional payment?
A secondary payer can assume costs that the other payer is responsible for. This is what is called a conditional payment. It is conditional because the payer must be repaid. Once payment has been given or a settlement has been reached, the conditional payment must be repaid. You are responsible in ensuring that the conditional payment will be settled in the future.
Owning multiple insurance policies enables you to add an extra layer of protection for medical claims. However, this can also make things very confusing. Who should be the primary payer? How do I claim from both payers? If you are already eligible for Medicare, which plan should you choose? These are just some of the questions raised. This is why it is important to choose an insurance company that you can easily reach.
At Covensure Brokerage LLC, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. To learn more about how we can help you, please contact our agency at (248) 572-1580 or Click Here to request a free quote.