Tertiary refers to the third order, level, or number. When talking about insurance policies, “tertiary” means that it is neither “primary” nor “secondary.” This third-level insurance is only available after the first two have been used up. Tertiary insurance is usually given to employees on top of their basic health insurance for themselves and their families. So we’ll look at what tertiary insurance coverage is, as well as health insurance and primary secondary tertiary insurance.
What is Tertiary Insurance
Tertiary insurance is a type of insurance coverage that supplements pre-existing policies. In fact, tertiary insurance is a third type of insurance policy you can get besides Medicare and a supplemental policy. Tertiary insurance can result from having multiple sources of health insurance.
For example, one spouse works for a company and receives health insurance, whereas the other spouse previously worked for another company and received retiree health insurance from the former employee before joining another company and receiving new health insurance. Having more than one insurance policy can be helpful because one policy might cover a cost that another one doesn’t.
Most of the time, primary insurance covers all costs up to the limits of the policy, and secondary insurance covers any costs above the policy limits. However, if the primary insurance does not cover these costs for any reason, the tertiary insurance will.
How Tertiary Insurance Works
You can only use a tertiary insurance policy if the primary and secondary policies aren’t enough. For example, if you have a $150,000 claim and your primary and secondary insurance policies only cover $100,000, your tertiary insurance policy will kick in. As a result, if you have three policies, the primary insurer is always billed first. If there is still a balance, it is transferred to the secondary insurer. Finally, any remaining balance will be paid to the tertiary insurer.
Excess Costs Insurance
Tertiary insurance is there in case primary and secondary insurance aren’t enough to cover a claim. In the case of health insurance, for example, you may require a particularly costly procedure that costs more than the other insurers are willing to pay. If you have liability insurance, you could be sued for more than what your main and secondary policies cover. Having tertiary insurance lowers the amount you’d have to pay out of pocket.
When Coverage Becomes Available
A third-level insurance policy only pays out if neither the first- or second-level policies are enough. If you have a claim for $100,000 and your first two policies cover you for $150,000, the tertiary insurer will not be involved in the claim at all. It’s not like the businesses have agreed to “split the bill three ways.” Always bill the primary insurer first. After the primary insurer has paid, if there is still a balance, it is given to the secondary insurer. Any remaining balance will be paid to the tertiary insurer.
Getting Tertiary Insurance
Only after the primary and secondary insurance benefits have been used up can the tertiary insurance coverage be used. As a result, tertiary insurance premiums can be lower than primary insurance premiums. Many employers include tertiary insurance as part of their compensation package. You can also get tertiary insurance from your credit card company, bank, or other companies that may offer it as part of a package deal.
Primary Secondary Tertiary Insurance
The first insurance listed on the Patients Ability > Patient > Insurance tab is primary insurance, the second is secondary insurance, and the third is tertiary insurance. This information can be modified in the insurance reference’s plans tab.
Primary health insurance is the first to kick in, paying claims as if it were the only source of health coverage. The secondary insurance plan then pays some or all of the remaining costs after the primary plan has paid the claim.
As a result, what are the three levels of healthcare? Levels of care are frequently discussed by medical professionals. They are classified as primary care, secondary care, tertiary care, and quaternary care.
What Is The Difference Between Primary And Secondary Insurance?
The primary insurance is the insurance that pays the claim first, and the plan will pay up to the coverage limits. Once your primary insurance has paid for everything, the remaining claims are sent to your secondary insurance.
Tertiary Supplemental Health coverage
Tertiary supplementary policies complement existing health insurance. For example, you may already have a high-deductible health insurance policy that covers your surgery and a secondary policy that helps you meet your deductible. A tertiary supplementary policy can assist you in covering your other out-of-pocket expenses. If you have two health insurance policies, like if you and your spouse are both covered by your own policies, any other insurance would be considered tertiary.
Medicare is actually designed to work in conjunction with tertiary policies. Because Medicare does not cover everything, many seniors opt for secondary Medigap policies to supplement their coverage. Tertiary insurance is any coverage in addition to Medigap. This could be a separate policy for out-of-pocket costs, a travel policy for coverage while traveling, or insurance through a family member or employer.
Other Insurance Options
Tertiary coverage is not only available in the health insurance industry. Rental cars may be covered by your auto insurance policy, the policy of your credit card, and any insurance provided by the rental car agency. Credit card purchase protection can also serve as a third line of defense, supplementing your primary renters or homeowners insurance as well as any additional riders or separate policies you purchase. Travel insurance may be tertiary for you as well.
Importance Of Tertiary Insurance Coverage
Many people don’t think they need tertiary insurance because their primary and secondary policies usually cover them well enough. However, you must understand that insurance will not cover all incidents. There will always be exclusions or low coverage amounts, so the two policies may not be enough to cover your claim. Tertiary insurance can thus be very useful in this type of situation.
Making Claims for Secondary and Tertiary Insurance
When we started our medical billing business in 1994, I had never billed for a medical claim before, let alone a secondary or tertiary one. I had no idea. In fourteen years of billing, I’ve learned a lot, and I’ve noticed from questions on our discussion board that many newbies don’t understand secondary and tertiary claims billing at all.
To begin with, how does one obtain two or three insurance policies, one of which is major? If a husband and wife both work and are covered by medical insurance through their employers, they could each have household insurance policies that cover them under each other’s plans. One can be the primary and the other secondary.
If one of these couples had previous army expertise and carried over their Tricare army insurance coverage, that would be the third payor if there was any steadiness left. Which company is major and which is secondary is determined by one of two distinct strategies.
To begin with, if a person works and has insurance coverage, that coverage is critical. If a person is retired and has Medicare, but his or her partner works and has household coverage, the partner’s plan can be primary, and Medicare can be secondary.
Related Article: How Does Liquid Property Work? 2022
There isn’t a choice for every situation, but the main thing that determines the order is whether or not the person or their partner is working. For dependents (often children), some adhere to the “birthday rule,” which states that whichever parent’s birthday falls first during the year is significant. In fact, the order of insurance coverage is established by a courtroom order with the entire divorce market generally.
Secondary claims can be sent both electronically and in paper form. Even for secondary claims, Medicare requires digital submissions. When submitted electronically, all coverage from the EOB (clarification of benefits) is added to the declared data and sent to the secondary insurance provider.
When the secondary is submitted on paper, the declare is reprinted on a CMS form and a photocopy of the eob is attached. If other patients are listed on the eob, their personal information should be kept private. Many workplaces use black markers to block out undesirable data. I’ve put together white cardboard strips of different widths that we can slide into clear report covers to hide information we don’t want copied.
We only do this for businesses that only accept digital submissions. If there is still a balance after the secondary insurance provider has paid their share, the coverage is forwarded to the third provider. It is printed once more on a CMS type, and copies of the first and secondary insurance coverage carriers’ eobs are attached.
Frequently Asked Questions
What Does Tertiary Payer Mean?
Medicare becomes the tertiary payer when a beneficiary has more than one primary insurer. It is always the primary payer’s responsibility to pay the claims first.
How Do You Determine Which Insurance Is Primary And Which Is Secondary?
It is very simple to determine which insurance is primary and which is secondary. If you have an insurance policy through your employer and another through your spouse’s or parents’ plan, your own plan will be primary, and the other will be secondary.
Do Providers Require Bill Secondary Insurance?
If the physician has the secondary insurer’s information, he or she must submit the bill. Also, if the physician lacks the necessary information, he or she should provide the patient with a copy of the bill so that the patient can submit it for reimbursement.
Can You Be Covered By 2 Insurances?
Yes, you can be covered by two insurance policies. For example, it is perfectly legal to have two health insurance policies. You may have multiple insurance policies under certain conditions.