The term
"dual medical insurance" is used when a person carries more than one
kind of medical insurance. Married people who work often face this kind of
situation. With the hopes of securing the most adequate coverage, both the
husband and wife carry medical insurance policies. Unfortunately, this usually
causes a lot of confusion initially due to a lack of coordination. With dual
medical insurance, each company must agree to pay a claim in a certain order.
In other words, one medical insurance company must agree to pay the medical
claim first while the other medical insurance company pays second.
Dual medical
insurance companies must coordinate in order to determine how a medical claim
is paid. One company must be a primary insurance while the other is a
secondary. The way this process is initiated is by the person holding the
insurance. He must notify each company of the existence of the other. After the
initial notification, each insurance company will review policy language and
other information to determine which one is primary and secondary. In general,
most medical insurance companies pay as primary for medical claims submitted by
the person who initiated the insurance. So, for example, a man who has Group
Health through his work will submit claims to them first and whatever is unpaid
to the insurance company of his spouse.
In order for
dual medical insurance to work, both companies must agree with the payment
arrangement and the correct information needed to process a medical claim. For
the primary insurance company, it must receive the original, itemized medical
bill. For the secondary insurance, the company must receive a copy of the
original bill along with an explanation of benefits showing that the primary
insurance has paid their portion of the claim. It is a process that can be
messed up easily. So wise patients keep records of any medical bills and
explanation of benefits for health services. They also keep their doctor
apprised of how their insurance companies pay.
It is
important to point out that carrying dual medical insurance is not always beneficial. Companies
like Blue Cross will only pay as a secondary if it feels the primary under paid
a medical claim. Therefore, it is important to verify how a company pays as a
secondary before you pay for additional insurance because you could end up
paying money for nothing.
Source:
[http://www.ehow.com/how-does_4569459_dual-health-insurance-work.html]
