Can You Have Two Health Insurance Plans? How Secondary Insurance Works
Having dual insurance coverage is possible — and most beneficial if your plans complement each other, are low-cost, or one is free. Otherwise, you must weigh its pros against having two deductibles, two premiums and more.
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By Mark Fitzpatrick
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Head of Insurance, MoneyGeek
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including [CNBC](https://www.cnbc.com/2020/04/15/cant-keep-up-with-insurance-premiums-heres-what-to-do.html), [NBC News](https://www.nbcnews.com/business/autos/flooded-cars-are-problem-their-owners-future-car-buyers-n1278493) and [Mashable](https://mashable.com/article/tesla-insurance-rates). Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
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Edited by Erika Hearthway
EH
Content Writer and Editor
Erika Hearthway is an experienced professional linguist. She writes clear, compelling content for a variety of companies on topics ranging from finance to fashion. She also works as an editor, proofreader, and translator from Spanish to U.S. English, and she ensures that any copy that crosses her desk is polished, error-free, and written to have maximum impact. Prior to her career as a linguist, Erika worked as a project manager overseeing large-scale, multilingual translation efforts for companies looking to expand their global footprint.
MF
By Mark Fitzpatrick
MF
Head of Insurance, MoneyGeek
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including [CNBC](https://www.cnbc.com/2020/04/15/cant-keep-up-with-insurance-premiums-heres-what-to-do.html), [NBC News](https://www.nbcnews.com/business/autos/flooded-cars-are-problem-their-owners-future-car-buyers-n1278493) and [Mashable](https://mashable.com/article/tesla-insurance-rates). Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
EH
Edited by Erika Hearthway
EH
Content Writer and Editor
Erika Hearthway is an experienced professional linguist. She writes clear, compelling content for a variety of companies on topics ranging from finance to fashion. She also works as an editor, proofreader, and translator from Spanish to U.S. English, and she ensures that any copy that crosses her desk is polished, error-free, and written to have maximum impact. Prior to her career as a linguist, Erika worked as a project manager overseeing large-scale, multilingual translation efforts for companies looking to expand their global footprint.
Updated: August 20, 2024
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Whether or not you realize it, having two health insurance plans is common. For example, spouses can have their own policy while also being covered by each other’s employer plan. Young adults (those under 26) can have health insurance from their employer and coverage from their parent’s policy. In the same way, if you’re under 26 and married, your spouse’s and parent’s policies can cover your medical expenses. A child can be covered by both parents’ health insurance (assuming they have individual plans).
However, your insurers won’t receive your bill simultaneously, so they can’t cover the same medical expense. These are subject to primary and secondary insurance rules, so one will be billed before the other. You can’t earn from a medical need because although your second policy may help you with the costs from your first, your total coverage can’t be more than 100% of your health expenses.
You can have two health insurance plans, but primary and secondary insurance rules apply, so you can’t receive reimbursement for more than the total cost of your medical expenses.
There are many benefits to having dual insurance coverage, but you must also consider the potential drawbacks before deciding whether it’s the best option for you.
Your coordination of benefits provision determines which health insurance plan is primary and secondary. It identifies which pays first and helps prevent duplication of benefits.
Claiming that you have double coverage if you have two health insurance plans might be misleading — after all, your insurers won’t cover the same amount for the same medical need. The second health plan becomes your secondary health insurance. It only takes effect when your primary insurance plan pays for your medical expenses based on the policy.
Secondary health insurance can help you manage costs since you may be able to use it to pay for your primary plan’s deductible, copays or coinsurance. It can also cover some or all of the amount left to pay once your first policy processes the claim. However, secondary insurance can also increase expenses because it has a separate deductible and premium.
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Why do we need ZIP code?Your primary health insurance varies depending on your situation. For example, some couples cover their spouses through each other’s employer plans. Your employer’s plan becomes primary, while your spouse’s plan is secondary. Health coverage from a policy where you’re a dependent (for example, under your parents’ or spouse’s plan) is always secondary. Medicare plans are usually primary, with your employer or private plan secondary.)
Whichever is your primary insurance will receive your claim first and will pay it out according to your policy limits. Your insurer does this as if there is no secondary health insurance provider. Once your primary insurer pays off your claim, your secondary plan takes effect and covers its share of your health expenses. You’ll have to cover any remaining amount after that out of pocket.
The National Association of Insurance Commissioners developed the coordination of benefits (COB) provision. Although it isn’t a law, it does serve as an industry standard. The COB determines which plan pays your health insurance claim first — these are usually larger insurance companies. Programs such as Medicaid are typically last. You cannot go back and forth between your health plans: the primary will always be primary and will pay first. The same system ensures that payments don’t overlap, so the amount your policies cover will never exceed 100% of your medical costs.
UNDERSTANDING THE BIRTHDAY RULEIf you and your spouse both cover your child in your health insurance plans, whose coverage is primary? The answer lies in your birthdays. The coordination of benefits includes several rules that determine primary and secondary plans — one of which is the Birthday Rule. It states that the policy of the parent whose birthday comes first during the year becomes the child’s primary health insurance.
It pays to understand which policy offers the best kid’s health insurance, and you may consider dropping one of the existing plans to ensure the best coverage for your child.
You can get multiple benefits from having two health plans. However, considering the average cost of health insurance, it may also come with drawbacks. It’s best to factor in the pros and cons of having dual insurance coverage before deciding whether it’s your best option.
The best scenario for having two health insurance policies is if they can provide better coverage without increasing your costs. Keeping both is a solid option if one is free or both health plans are low-cost.
Having two health plans can be an excellent way to have protection against medical costs. However, there are several factors to consider before purchasing secondary health insurance. MoneyGeek included the answers to some commonly asked questions to provide more information.
Can I have two health insurance plans?Yes, it’s possible to have two health insurance plans. However, it’s best to ensure that you can maximize both policies without incurring too many insurance costs.
How do primary and secondary insurance work?The coordination of benefits, created by the National Association of Insurance Commissioners (NAIC) as an industry standard, determines which plan is primary and secondary. The former receives your claim first and pays it according to your policy. Afterward, the latter takes effect and covers some (if not all) of the remaining amount.
Having dual insurance coverage doesn’t guarantee that you won’t have out-of-pocket costs. You’ll have to shoulder the amount left over once both insurance plans process the claim — in other words, the amount not covered by either insurance plan.
Is having two health insurance worth it?It depends. Having two health plans can be cost-effective if one is free or both are low-cost. It’s also best to ensure that these are complementary, so review their coverages and benefits to see whether these overlap or are too similar.
