My company is switching insurance, and because I am remote in a different location than the bulk of the company, the insurance they are switching to is far worse than what I had. their prescription drug plan is WAY cheaper.
The company offers a $0 high deductible plan, and the prescription drug benefit is not subject to any of those deductibles.
My wife has the ability to get separate insurance, a normal plan that would be far better for everything but the drugs. I am on a fair few prescriptions because if diabetes.
Can I sign up for the high deductible plan AND the normal plan, and just never use the high deductible? Are there any legal pitfalls I should be worried about? Can I use the HSA (my company puts money in there for free)?
Insurance is based out of Washington State, I live in Colorado if it is important.
When you have dual coverage, you need to use both insurance plans because they have a coordination of benefits clause. You can’t choose to use one and not the other. There are also rules about which plan is primary; someone here can provide more details on that.
You will need to fill out a coordination of benefits form for each policy.
I recommend researching this thoroughly, as many people have shared problems with having dual coverage and whether it’s really worth it.
While you can have multiple insurance plans, you can’t choose when to use them.
A plan you get through your job will always be the primary plan over your spouse’s plan, which you are just a dependent on.
You need to use your plan first, then submit the costs to your spouse’s plan. One of the main benefits of a high-deductible health plan (HDHP) is that it allows you to contribute to a Health Savings Account (HSA). If you have other coverage, even as a secondary plan, that is not also an HDHP, you won’t be able to contribute to your HSA. That would be considered non-qualifying coverage.
Insurance companies have a strange way of discovering that you have other coverage. This could happen within the first few months or even years later. If they find out they paid as primary for something they shouldn’t have, they’ll retroactively deny the charges. By then, you won’t be able to submit a timely claim to the correct insurance, leaving you with the full bill to pay, as if you didn’t have insurance.
If you’re okay with not making HSA contributions, check the secondary policy and read the Coordination of Benefits clause—each contract is different. It could be very generous or very stingy. If you decide to skip the HSA contributions, it might still work out in your favor, depending on what the CoB clause states. But you can’t simply choose not to use your primary insurance in certain situations.
Thank you, this is exactly the kind of thing that I need to know. I will be sure to research the coordination of benefits stuff when I get the information in October, but it certainly sounds like having both insurances will not do me any favors.
My ex used to have insurance through her employer and then also was on my plan. It turned out to be quite messy because basically both insurances wanted to shift responsibility to the other insurance.
It’s a nightmare in terms of billing and coverage. Insurance companies will point fingers at each other and you’ll be the one getting bills. Just choose one.
There are rules that determine which insurance is primary and which is secondary. You must bill the primary insurance first and the secondary insurance second, and you need to ensure that each provider understands this. While having both could be helpful, it might also be a big hassle. You can’t just choose whichever one you want for a specific service.