What is the role of "secondary insurance"?

The role of secondary insurance is to act as additional coverage that complements a primary insurance plan, allowing policyholders to cover more expenses that may not be fully paid by their primary insurance. This is particularly important in healthcare, where medical costs can be significant and having secondary insurance can help reduce out-of-pocket expenses for the insured.

Secondary insurance typically pays for what's left over after the primary insurance has made its payment, which can vary based on the policies involved. For example, if a primary insurance plan covers 80% of a medical bill, the secondary insurance may cover some or all of the remaining 20%. This relationship enhances the overall coverage for the insured, providing peace of mind and financial protection against high medical costs.

This understanding helps highlight the function of insurance policies in a comprehensive health plan, demonstrating that secondary insurance plays a crucial role in reducing the financial burden on individuals during healthcare situations.