In billing terminology, what is generally considered primary insurance?

In billing terminology, primary insurance refers to the insurance policy that is responsible for paying the first portion of a claim submitted for medical services. When a patient receives treatment, the primary insurance is billed first to cover the costs according to the terms of the policy, including any deductibles, copays, or coinsurance that may apply.

This concept is crucial for understanding the order in which claims are submitted and processed. After the primary insurance fulfills its obligations, any remaining balance may then be billed to secondary insurance, if applicable, or to the patient. In this context, identifying what constitutes primary insurance is essential for accurate billing and ensuring that payments are received promptly from the appropriate party. Thus, recognizing the role of the primary insurance helps avoid billing errors and improves the efficiency of the claims process.