What effect does having both primary and secondary insurance generally have?

Having both primary and secondary insurance can help lower the overall cost of healthcare by providing an additional layer of coverage that can pay for expenses not fully covered by the primary insurance. This dual coverage can reduce the amount the insured individual has to pay out-of-pocket, as the secondary insurance can take care of some of the remaining costs after the primary insurance has processed a claim.

For example, if the primary insurance covers a medical procedure but leaves a significant copayment or deductible, the secondary insurance may be designed to cover these costs, thereby lessening the financial burden on the insured. This arrangement can lead to a more manageable overall healthcare expense, as individuals can have a larger portion of their healthcare costs covered through the two plans working together.

In this way, the combination of both insurances can lead to improved financial protection against high medical expenses, making healthcare more affordable for those with dual coverage.