What is a characteristic of secondary insurance coverage?

Secondary insurance coverage typically serves as a supplement to primary insurance, providing additional benefits after the primary insurance has processed a claim. One key characteristic of secondary insurance is that it usually covers the remaining costs after the primary coverage has paid its share. This allows individuals to receive additional financial support for their medical expenses.

The characteristic that states it requires large prepayments before coverage generally does not align with the fundamental nature of secondary insurance. Instead, secondary coverage is designed to assist with costs that exceed what the primary insurance has already covered, rather than imposing a large prepayment requirement.

Secondary insurance is invaluable for reducing out-of-pocket costs for patients, allowing them to manage their healthcare expenses more effectively. This understanding helps in recognizing how secondary coverage interacts with primary insurance in managing overall healthcare costs.