What does Secondary Insurance provide?

Secondary insurance is designed to provide additional coverage after primary insurance has fulfilled its obligations. When an individual has both primary and secondary insurance policies, the primary insurance pays first on covered expenses. Once this payment is completed, the secondary insurance may cover additional costs that were not fully paid or that were not covered by the primary insurer, such as copayments, coinsurance, and deductibles.

This function of secondary insurance is particularly beneficial in reducing out-of-pocket costs for the insured, as it can help to cover gaps in the primary policy’s coverage or amounts left unpaid. Therefore, policies generally maintain that secondary insurance plays a crucial role when there are high medical expenses or when dealing with various types of healthcare services that might exceed what the primary insurance covers.

The other options do not accurately reflect the role of secondary insurance. For instance, it does not provide benefits before primary insurance pays, nor is it limited to cosmetic procedures or exclusive benefits for dependents. These aspects speak to the nature of primary insurance or other specialized forms of coverage instead.