Is It Beneficial to Have Two Health Insurance Plans?
By Krista DeKuyper | March 12, 2025 |
If you’ve shopped around for health insurance recently, you’ve probably considered being under two health insurance plans. Having two health insurance plans is not uncommon. In fact, there’s many benefits in having two health insurance plans, depending on the person. Some look for additional coverage outside of their primary plan. Others are under their spouse or work’s insurance benefits, but want a more personalized policy. Join us as we explore how having two different health insurance plans works. Keep reading to find out if dual health insurance coverage is right for you.
What is Dual Health Insurance Coverage?
Dual health insurance coverage means a person is covered by two different insurance plans. For example, an individual receives group benefits from their job, but also purchases their own individual health policy. That individual would be under dual health insurance coverage. If one is unsatisfied with the coverage from their current plan, seeking out an additional policy will bridge the gaps.
How Does Having Two Health Insurance Plans Work?
If you’re under two health insurance plans, you need to submit claims in a specific way. An insurance broker or provider will explain this process, which is known as Coordination of Benefits (COB). Understanding the COB is pivotal in receiving the proper coverage for your health needs.
Primary Insurance vs. Secondary Insurance
Primary and secondary insurance come into play only for those who have two health insurance plans. One plan is designated as the primary insurance, while the other is known as the secondary insurance. The primary insurance is responsible for paying first. They are the first insurance provider you should submit any and all claims to. Once the primary insurance has processed the claim, any remaining costs can be billed to the secondary insurer.
Another scenario where this occurs is when the primary insurance rejects your claim. Once your claim is rejected by the primary insurance, the secondary insurance can provide coverage instead.
The Benefits of Having Two Health Insurance Plans
- Increased Coverage: Dual health insurance coverage increases your ability to be covered. When your primary insurance rejects a claim, you can make the same claim to your secondary insurance instead. If you only receive partial coverage from your primary insurer, secondary insurance might provide coverage for the remainder. This minimizes your out-of-pocket expenses.
- Cost-sharing: Having two health insurance plans allows you to reduce the amount of deductibles and copayments you pay. This is especially useful when you are unable to cover potential out-of-pocket expenses when on a single health insurance plan.
- Personalized Options: Individuals are able to tailor their healthcare plans by combining benefits. For example, while one plan will have more extensive dental coverage, a secondary plan will offer enhanced prescription drug coverage. In this scenario, many individuals will opt for two plans.
Potential Downsides of Having Two Health Insurance Plans
- Complexity: Navigating two different insurance plans is more complicated, leading to confusion about which plan to use when seeking care.
- Higher Premiums: Maintaining two insurance policies means paying higher total premiums. This will potentially outweigh the benefits if the additional coverage does not significantly reduce out-of-pocket expenses.
- Potential for Overlapping Coverage: Certain benefits could overlap between the two plans. This will lead to unnecessary expenses or complications when filing claims.
When Is It Beneficial to Have Two Health Insurance Plans?
How do you decide whether dual health insurance coverage is right for you? Having two health insurance plans will not always be necessary. Here are a few examples of when two health insurance plans is advantageous:
- Chronic Health Conditions: Individuals with long-term medical needs will find financial relief in dual health insurance. The dual coverage is crucial for managing ongoing treatments and specialist visits.
- Families: Families are one of the most common demographics to utilize dual health insurance coverage. For example, one parent has a better work plan while the other has additional individual coverage. This individual plan offers broader pediatric or maternity care.
- High-Risk Professions or Activities: If you engage in dangerous activities, you are at risk of significant medical expenses. Dual insurance provides an essential safety net. For example, someone who has a career in stunt work is at risk to be seriously injured on the job. They’ll pay less out-of-pocket than they typically would with dual health insurance coverage.
Find The Right Plan with HealthQuotes
At HealthQuotes, we specialize in providing expert guidance to help you find a health insurance plan that works for you. We consider your individual health needs to tailor an insurance solution that provides the coverage and benefits you deserve. Whether you’re exploring dual health or single insurance plan options, we’re here to ensure you find an effective plan.
Ready to protect your health? Don’t wait! Reach out to one of our licensed insurance brokers today. We’ll work together with you to answer your pressing questions. Let us find the right plan for your health and peace of mind.
