More than one health insurance? Which one comes first?

Many people have more than one insurance. Maybe the husband has family coverage thru his job and the wife also has full coverage for the family thru her job. This situation can be really great for the family's finances or it can be a total hassle. What are some of the problems associated with multiple insurances?

1. Which insurance is first and how do you find out this answer?

2. How do you get all of your insurance to pay?.

3. Can a person even have more than one insurance?

4. What if Medicare is in the mix?

5.Many medical providers will not submit to the second insurance. Now what?

 I have a cousin who lives in Florida. She asked me the other day if her 23 year old daughter can remain on the family insurance plan even though she now has coverage through her new job? Well, it seems that every state has different rules on this. Not so much rules on having more than one insurance, but which insurance is primary. So, I called her family insurance plan and asked them. The answer for both Florida and Massachusetts is that whichever insurance came first, that insurance always stays as the primary insurance. So in the case of my cousin's daughter, she was covered under her dad's insurance since she was born, so his insurance is primary. Her insurance through her job is secondary. And the reason I say this is so for Massachusetts too, is because I had the same exact situation today with one of my clients. 

 Now in New Jersey, they do things a little differently; they use the birthday rule. The person whose birthday comes first in the year's insurance is primary. So my husband's birthday is in March and mine is in May. His insurance is primary, mine would be secondary.

Now why is this all so important? Why can't you choose for yourself based on which plan has the better coverage? Well, that is not how it all works in this crazy insurance world. We have no control over it at all. It is VERY important to know which plan is primary and which is secondary, because if your provider sends the claims in out of order, then nothing gets paid. Your explanation of benefits will state:  "please send us the EOB from the primary insurance" or"Our records show that another insurance is primary. This claim must be submitted to that insurance first."

So if you have this issue and you have no idea which insurance is primary, call your insurance and ask them how it works in your state.

Stay tuned for my next post which will answer question number 2- How do you get all of your insurances to pay all of your claims?