What does "secondary insurance" refer to?

Secondary insurance refers to an additional insurance policy that assists in covering healthcare costs that may not be fully addressed by the primary insurance provider. This means that if the primary insurance pays its portion of a claim, the secondary insurance can then cover any remaining expenses, such as deductibles, co-pays, or co-insurance amounts. This arrangement is beneficial for patients, as it helps reduce out-of-pocket expenses and provides a layer of financial protection.

In the context of pharmacy billing, secondary insurance plays a crucial role in ensuring that patients have access to their medications without facing excessive costs. When a prescription claim is processed, the primary insurance first reviews it, and if there are costs left unpaid, the secondary insurance can be billed to cover those additional expenses.

Other options do not accurately describe the role of secondary insurance. For instance, an insurance policy that covers only prescription medications pertains to a specific type of coverage, not the function of secondary insurance. The primary insurance provider is the first insurer that processes claims and does not represent the concept of secondary coverage. Lastly, insurance applicable only to dependents does not capture the essence of secondary insurance and its function in complementing primary coverage, as it could apply to anyone, not just dependents.