Secondary Health Insurance Policy

Some families purchase a secondary health insurance policy to cover medical expenses their primary health insurance plan does not reimburse. A secondary policy may pay for medical goods, services, co-payments or other medical costs, and may be obtained from a private or public source.

Who Needs Secondary Health Insurance?

Examples of individuals who might benefit from a secondary policy include parents of children with health problems, seniors who have Medicare as their primary policy, or families with limited primary plans. According to research by the "Consortium Consumer Brief," families of children with special health care needs report two major gaps in their primary health insurance policies, necessitating a secondary policy: high deductibles and/or reimbursement limitations, and limitations on types of services covered.

Private Secondary Policies

A family or individual may obtain a secondary health insurance policy from a private source, such as a private health care organization or a health plan offered through an employer. For example, according to financial information website, FinancialWeb, the AARP sells secondary health care policies designed to reimburse services and costs not covered by Medicare.

Public Secondary Policies

Families may also get secondary health coverage from a public source, such as Medicaid, available to low-income households, or TRICARE, which can act as a secondary health policy for military families. Other public programs such as the Title V Program for families of children with special health care needs may also serve as secondary health insurance policies.