Which insurance coverage pays after the primary insurance has made a payment?

The correct answer is secondary insurance, as it is designed to pay for costs that remain after the primary insurance has processed a claim and made its payment. In a typical insurance scenario, an individual may have more than one insurance policy. The primary insurance is the first to pay, covering a portion of the medical expenses, while the secondary insurance takes over for any remaining balance, potentially reducing the out-of-pocket costs for the patient.

Understanding how secondary insurance works is crucial in the billing process, as it ensures that all eligible expenses are properly covered without unnecessary financial burden on the patient. This distinction is important because medical billing professionals must be able to navigate the different roles that primary, secondary, and tertiary insurances play in patient coverage. In contrast, supplemental insurance often works to cover additional services not included by the primary coverage, while primary insurance is simply the first level of coverage without any interaction with subsequent insurances. Tertiary insurance would come into play only if both primary and secondary insurances have already paid.