What is Tertiary Insurance and How Does it Work?

In the world of insurance, there are different levels of coverage that individuals can opt for. Primary health insurance is the first level, followed by secondary insurance. But what about tertiary insurance? What is tertiary insurance and how does it work? In this article, we’ll answer these questions and more.

Understanding Tertiary Insurance

Tertiary insurance is a type of health insurance that provides additional coverage beyond what primary and secondary insurance policies offer. It can cover medical expenses that are not covered by primary or secondary insurance policies, such as deductibles, co-payments, and out-of-pocket expenses. Tertiary insurance is also known as supplemental insurance or third-party liability insurance.

What Does Tertiary Insurance Cover?

Tertiary insurance can cover a wide range of medical expenses, depending on the policy. Some of the most commonly covered expenses include:

  • Prescription medications
  • Surgical procedures
  • Dental work
  • Mental health treatment
  • Chiropractic care
  • Medical equipment and supplies

How Does Tertiary Insurance Work?

When you have tertiary insurance, you’ll typically file a claim with your primary insurance first. Once you’ve received payment from your primary insurance policy, you can submit a claim with your tertiary insurance to cover any remaining expenses. Tertiary insurance can also be used to cover deductibles, co-payments, and other out-of-pocket expenses that your primary insurance policy does not cover.

Types of Tertiary Insurance

There are several different types of tertiary insurance policies available. These include:

Supplemental Insurance

Supplemental insurance policies are designed to supplement your primary health insurance policy. They can help cover expenses that your primary insurance policy does not cover, such as deductibles, co-payments, and out-of-pocket expenses. These policies can be purchased from insurance providers, and the premiums are typically lower than those of primary health insurance policies.

Catastrophic Insurance

Catastrophic insurance policies are designed to provide coverage for major medical expenses, such as hospital stays and emergency surgeries. These policies typically have high deductibles and low premiums, and they are designed to be used in the event of a major health crisis.

Third-party Liability Insurance

Third-party liability insurance policies provide coverage for medical expenses that are incurred as the result of an accident or injury caused by someone else. These policies can be purchased by individuals or businesses, and they provide coverage beyond what a primary or secondary insurance policy would cover.

Do You Need Tertiary Insurance?

Whether or not you need tertiary insurance depends on your individual circumstances. If you have significant medical expenses that are not covered by your primary or secondary insurance policies, or if you have a pre-existing medical condition that requires ongoing treatment, tertiary insurance may be a good choice for you. However, if you are healthy and do not have many medical expenses, you may not need tertiary insurance.

How to Choose a Tertiary Insurance Policy

Choosing a tertiary insurance policy can be confusing, but there are a few things to keep in mind when making your decision:

  • Compare policies from different insurance providers to find the best coverage at the best price.
  • Consider the deductibles, co-payments, and out-of-pocket expenses associated with the policy.
  • Read the policy carefully to understand what is covered and what is not covered.
  • Make sure the policy is accepted by the healthcare providers you use.

Conclusion

Tertiary insurance is a valuable tool for individuals who need additional coverage beyond what primary and secondary insurance policies offer. By understanding what tertiary insurance is and how it works, you can make an informed decision about whether or not to choose this type of coverage.

Common Questions & Answers

  • Q: Can I have more than one tertiary insurance policy?
  • A: Yes, you can have more than one tertiary insurance policy. However, you’ll need to make sure that the policies don’t overlap in their coverage.
  • Q: Will tertiary insurance cover pre-existing conditions?
  • A: It depends on the policy. Some tertiary insurance policies will cover pre-existing conditions, while others will not.
  • Q: Can I buy tertiary insurance without having primary or secondary insurance?
  • A: Yes, you can buy tertiary insurance without having primary or secondary insurance. However, you will still need to pay for any medical expenses that are covered by your primary or secondary insurance policies.

References

1. Investopedia. (n.d.). Tertiary Insurance. Retrieved September 02, 2021, from https://www.investopedia.com/terms/t/tertiary-insurance.asp

2. Healthcare.gov. (n.d.). Types of Health Insurance. Retrieved September 02, 2021, from https://www.healthcare.gov/choose-a-plan/types-of-health-insurance/

3. Medical Mutual. (n.d.). Understanding Tertiary Health Insurance. Retrieved September 02, 2021, from https://www.medmutual.com/For-Individuals-and-Families/Health-Insurance-Education/Understanding-Health-Insurance/Tertiary.aspx

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