Navigating Dual Health Insurance Options
Hi there! I’m 24 years old and have always been on my parents’ health insurance plan, which, while comprehensive, is quite costly (around $3,000 a month with Cigna). The plan is set for me to transition off when I turn 26, coinciding with my mom and older brother’s eligibility for Medicare—so it’s not just my situation they’re managing.
Recently, I noticed that both major networks in my area are planning to drop Cigna, which complicates things. I just started a new job that offers Independence Blue Cross insurance, and I’m torn. While I appreciate my parents’ coverage—my last therapist even said they have the best insurance she’s seen—I know it might become a hassle for smaller medical needs.
I’ve been contemplating switching to my work insurance, but I’m also considering keeping both plans until I turn 26. I know my work insurance would be the primary one, but I’m curious about the practicalities of having dual coverage. What should I realistically expect from having both? I’d appreciate any insights!
Having double health insurance—known as being “insured by two plans”—is definitely an option, but it does come with some considerations.
Primary vs. Secondary Coverage: As you mentioned, your workplace insurance would be your primary coverage, while your parents’ plan would be secondary. This means that your workplace plan pays for covered services first, and then your parents’ plan can help cover any remaining costs. Keep in mind that secondary coverage usually picks up only what the primary plan doesn’t cover, so not everything will be covered at 100%.
Cost Effectiveness: While your parents’ plan is expensive for them, if you’re able to use it primarily for emergencies or significant healthcare needs, it could save you money in the long run. Just be cautious about how much overlap exists between the two plans, as some services might be denied coverage due to being fully paid by your primary insurance.
Coordination of Benefits: You’ll need to inform both insurance companies that you have dual coverage. They will coordinate benefits to determine which one pays first. This may involve paperwork or notifying providers about your two policies.
Provider Network Restrictions: Check if your preferred healthcare providers accept both Cigna and Independence Blue Cross. If they don’t accept one of the plans, you might find yourself limiting your options. This is especially important given that you’ve noted Cigna is being dropped by some networks in your area.
Potential Premiums: If you choose to stay on both plans, consider the cost of premiums, deductibles, and out-of-pocket maximums. If your parents’ plan is costing $3k a month, evaluate how that fits into your financial situation versus potentially just using your primary insurance.
Duration Benefit: Since you’re only planning to use your parents’ insurance until you turn 26, it may make sense to keep it for a bit as a safety net. However, do consider that you won’t have double coverage for long.
In summary, having both plans can give you more options and possibly more comprehensive coverage, especially for emergencies. Just be prepared for some logistical coordination, and ensure you fully understand how the two plans work together to avoid any surprises with coverage. It’s a good idea to weigh the pros and cons carefully before making your decision, especially with costs and provider networks in mind.