What is the Difference Between Primary and Secondary Insurance Coverage?

Last Updated: January 14, 2015November 20, 2024

When purchasing travel insurance, you may notice the terms “Primary Insurance” and “Secondary Insurance” in relation to a plan’s medical coverage. The key difference between the two lies in how claims are processed and if other healthcare plans need to be considered before your travel insurance pays out for claims relating to unexpected medical bills and health care costs you incur while traveling.

Primary Coverage Overview

With primary insurance, your travel insurance company will directly cover your claim without requiring you to initially file through your primary health insurance policy, such as Medicare, Medicaid, or an employer plan. This often results in faster reimbursement, as other parties don’t need to get involved in the claims process.

Travel insurance policies that include primary medical insurance are generally preferred among travelers since the claims process is relatively straightforward. Primary insurance also avoids getting a traveler’s domestic health insurance coverage involved, which can be beneficial for those with high deductibles.

The downside of primary insurance plans is that premiums are usually higher than secondary insurance plans.

Secondary Coverage Overview

Plans that offer secondary medical insurance work in the opposite direction. In the event you need to file a medical insurance claim with secondary insurance, your travel insurance company will only pay out once you’ve initially filed with your primary health insurance plan. Your travel insurance provider will cover any eligible medical costs not paid by your primary healthcare provider.

This typically is not a concern for international travelers, since most Medicare, Medicaid, and employer plans don’t provide coverage overseas and will likely deny claims relating to medical emergencies that occur abroad. However, this type of coverage is more relevant for individuals traveling within the United States, where their primary healthcare coverage does apply.

When it comes to trip protection, secondary health insurance is typically more affordable.

Primary Vs. Secondary Travel Insurance: Which Type of Plan is Best?

Both primary and secondary coverage can limit out-of-pocket costs and provide strong protection against unforeseen medical expenses during a covered trip. While primary insurance offers can result in faster claims resolution and avoids the involvement of other policies, travelers that purchase secondary insurance are equally as happy with the coverage and medical care they receive.

If you’re traveling internationally, the difference between the two types of coverage is minimal and should not be a major influence on the policy you purchase. While the claims process may involve additional steps, purchasing secondary insurance may be cost-effective.

If you’re planning a domestic trip, the coordination of benefits that’s included in secondary medical insurance may have an impact on your primary healthcare plan, making primary insurance the better option.

This information can vary based on the travel insurance policy. Please review the policy certificate to verify coverage. If you have questions about a specific policy, please contact us directly at 800-240-0369. Our customer service representatives are available from 8am to 10pm ET seven days a week and are delighted to help!