Can I Get a New Health Insurance Policy if I Already Have One?

Anyone with a health insurance policy in force can obtain a second supplemental policy. Though this may not increase your benefit levels, a second plan could pay for services where a primary policy does not. Many individuals participate in their employer-sponsored health insurance plan as well as selecting coverage as a dependent on their spouse's plan. Children may be dually covered as dependents on both of their parents' plans. You may also choose to purchase a supplemental policy in addition to any other policies you currently have.

Coordination of Benefits

• When you have two different health insurance policies, the insurance companies work together to coordinate your benefits. Insurers use a set of established rules to determine your primary and secondary policies. The primary policy pays for services first before the secondary policy picks up any costs. Insurance companies make sure they do not duplicate payments to providers if they submit claims for the same service to both insurers. The insurance you receive from your employer is your primary plan, and insurance where you are a dependent, such as a spouse's plan, is your secondary.

Birthday Rule

• Typically, the industry standard "birthday rule" is followed when children have coverage under two health insurance policies. Most often, children with dual coverage are dependents on both of their parents' plans. The rule is that the parent with the earliest birthday in the calendar year holds the child's primary policy. If both birthdays are the same, the parent on their plan the longest becomes the child's primary plan. A divorce decree, court order or other circumstances could supersede the birthday rule.

Non-Duplication Rule

• Some employers choose to place a non-duplication of benefits rule in their employee health plan offerings. This means that the secondary policy can only pay when the primary carrier does not pay the full percentage of allowed dollars. This is rare as the primary policy typically pays out the full amount allowed. However, your primary plans pays 80 percent of the costs when the coinsurance is 90 percent, and the secondary carrier pays the other 10 percent. The non-duplication rule varies by employer, so check your summary plan description document to see if they apply this rule.

Benefits of Multiple Policies

• Having more than one policy can be advantageous. The secondary policy may pay for what the primary does not, and one plan may cover services that the other plan excludes. Though dual coverage does not mean doubling your coverage levels, you can still save out-of-pocket costs if you are a high user of health care services. In addition, two plans may allow a larger choice of providers in your area and more flexibility in which doctors you would like to visit.