In typical billing, which statement describes secondary insurance?

In typical billing, which statement describes secondary insurance?

• A. Secondary insurance reimburses the patient in full for all costs.
• B. Secondary insurance is billed after primary and may cover remaining costs not covered by primary.
• C. Secondary insurance never pays once primary has paid.
• D. Secondary insurance is always the sole payer.

Answer: (B)

In typical billing, secondary insurance works after the primary insurer has paid. Its purpose is to help cover remaining eligible charges that the primary policy did not pay, according to the secondary plan’s rules. It may apply to remaining deductibles, coinsurance, or remaining allowed charges, which can reduce the patient’s out-of-pocket costs. However, it does not guarantee full reimbursement, and whether it pays at all depends on coordination of benefits, the secondary plan’s coverage limits, and the specific services billed. The other statements don’t fit because secondary insurance is not automatically full reimbursement, not impossible to pay after primary, and not the sole payer.

In typical billing, secondary insurance works after the primary insurer has paid. Its purpose is to help cover remaining eligible charges that the primary policy did not pay, according to the secondary plan’s rules. It may apply to remaining deductibles, coinsurance, or remaining allowed charges, which can reduce the patient’s out-of-pocket costs. However, it does not guarantee full reimbursement, and whether it pays at all depends on coordination of benefits, the secondary plan’s coverage limits, and the specific services billed. The other statements don’t fit because secondary insurance is not automatically full reimbursement, not impossible to pay after primary, and not the sole payer.