Medicare Secondary insurance can describe Medigap policies. These policies are secondary to Medicare because Medicare pays its portion of the bill and then the plan pays the remainder.
You see, the Medigap policy can complement Medicare. Medigap won’t replace Medicare. Further, you need Part A and Part B to qualify.
Below we take an in-depth look at Medicare Secondary Insurance and its benefits. Keep reading to learn more!
What is Medicare Secondary Insurance
Medicare Supplement insurance will assist you by closing the gap between Medicare payments and what you must pay.
These plans are regulated by the state as well as federal laws. The benefits you gain will be the same no matter which company you choose.
You can choose a secondary policy that covers multiple gaps or a policy that covers just a few of the gaps in Medicare. The rule of thumb is the more the plan covers, the higher the premium.
What is Secondary Insurance to Employer Coverage
If you get coverage from a large employer group health plan, then Medicare is likely secondary to your employer plan. But, if your employer group plan is primary doesn’t mean that it’s the best option.
Many seniors find that Medicare becoming primary will save them more money than staying on their employer group coverage.
If the group insurance is affordable, you may delay Part B. If you’re 65 and still working you may not need to enroll in Part B.
Primary vs Secondary Medicare Plans
Primary insurance is the insurance that pays first. Medicare is primary to small employer coverage, and Medicare can’t pay as your primary insurance if you never enrolled in it.
Talking to an insurance agent is always a good idea, they are experts that can help make sure you don’t end up in a situation without coverage.
Some people have no health coverage, so Medicare becomes primary by default. Other retirees have TRICARE or Veterans Association coverage.
Then, of course, many people have employer coverage. In many cases, secondary insurance won’t pay unless the primary insurance pays first. So, if you don’t have Medicare, you might not have coverage.
How Secondary Insurance Works
If you have two insurance policies that cover the same kinds of risks, one of them will be primary, and the other will be secondary. The primary insurance processes and pays claims first.
For example, suppose you have Medicare along with Medigap Plan G. Medicare will be your primary health insurance, and the Medigap plan is secondary.
If you go to the doctor, Plan G will cover what medicare leaves you responsible for paying once you meet the Part B deductible.
Medigap isn’t the only kind of secondary insurance available to people on Medicare.
Other common types of secondary insurance include:
- Insurance through your employer or your spouse’s employer
- Retiree insurance offered by your former employer
The rules about when Medicare is primary or secondary are called “coordination of benefits.” It’s important to understand these rules so you can make smart decisions about buying insurance.
Secondary vs. Supplemental Insurance
When you’re on Medicare, you can buy supplemental insurance. A Medigap plan covers the same services and procedures as Medicare.
Medigap plans are always secondary to Medicare. You can also buy supplemental insurance for things that Medicare doesn’t cover.
Because they cover services that aren’t part of Medicare, these insurance policies are neither primary nor secondary to Medicare-they stand on their own.
How to Get Secondary Insurance
You may be able to get secondary insurance through your employer, your spouse’s employer, or an employer-sponsored retiree plan. Or you can buy a Medigap plan.
MedicareFAQ’s agents can answer all your questions about supplemental Medicare coverage. We’ll help you find the plan that’s best for your budget and be your personal guide to healthcare for people with Medicare.
Just call us at the number above or fill out our form to get started.