Overwhelmed is an understatement: Primary vs Secondary Travel Insurance

[klpsmom]

I thought I had narrowed my choice down to Global Alert Preferred Plus, but wondered if it was overkill. It's the most expensive, but it covered the major items I worry about: anytime trip cancellation, high coverage for medical/emergency expenses with advance payment to hospitals to secure care (accident/sickness $250k, emergency evac and repatriation $1 million, non-emergent evac $25,000) etc. but this is a secondary policy, which is where I get :confused:

 

I have medical insurance, in which they will pay out-of-network (50% after deductible) AFTER I pay upfront:eek:. My question is, how does "secondary" trip insurance work?

[cruiseco]

I thought I had narrowed my choice down to Global Alert Preferred Plus, but wondered if it was overkill. It's the most expensive, but it covered the major items I worry about: anytime trip cancellation, high coverage for medical/emergency expenses with advance payment to hospitals to secure care (accident/sickness $250k, emergency evac and repatriation $1 million, non-emergent evac $25,000) etc. but this is a secondary policy, which is where I get :confused:

 

I have medical insurance, in which they will pay out-of-network (50% after deductible) AFTER I pay upfront:eek:. My question is, how does "secondary" trip insurance work?

 

All that "secondary" vs "primary" refers to is the order in which any valid insurance you might have will pay the bill. If a travel insurance plan is "secondary" you are expected to file a claim for any losses first with your "primary" insurer. Any remaining losses will then be paid by the travel insurer up to their limit.

 

Let's say in your case you run up a $1000 medical bill on the ship.

 

1) The $1000 would be charged to your shipboard account.

2) You would submit the $1000 to your regular health insurer and they would send you a check for $500 ($1000 less the 50% co-pay).

3) You then submit a claim to Global Alert for the unpaid $500 and they send you a check for that amount.

 

But let's suppose you buy a "primary" travel insurance plan:

 

1) The $1000 would be charged to your shipboard account.

2) You would submit the claim for the $1000 to the travel insurer FIRST. They send you a check for the $1000

 

As you can see, either way you are reimbursed for the full $1000 loss. It's just with a "secondary" plan you have to file two sets of claim forms.

 

What happens if you're on Medicare or some other insurer that won't cover you outside the country? Since your travel insurer is no longer "secondary" to any other insurance you have in place it, by default, becomes your "primary" insurer.

 

Be aware that in some states a travel insurer is not allowed to put itself in a "secondary" position -- by law they're primary. So check your plan wording and you might find that your coverage is "primary" anyway for you.

 

I have filled out the claims forms for medical expenses both for myself and for clients and as long as I have all of the required documentation it takes about 10 minutes so doing it twice should only add 10 minutes of work to the process. But the headache usually comes when your regular insurer fiddles around for a month or more getting their part handled and then the travel insurer might take another 3 - 4 weeks.

 

All things being equal (which they never are) I'd go with a "primary" insurer. But I wouldn't pay more just to save ten minutes of work in the unlikely event of actually having to see a doctor on the trip. Many others disagree.

[sirwired]

I'm with cruiseco. You don't have to fight with your primary insurer at all. You file the claim, you take what they pay (or simply accept the claim denial), and then go on to the travel insurer.

 

Even if your primary insurance reimburses poorly or not at all, you don't have to jump through the hoops you normally might decide to go through with your primary insurance if you didn't have the "backup" provided by the trip insurance. In fact, the best thing in that case is for your primary insurance to deny entirely, as that usually happens much faster than cutting you a check.

 

As with cruiseco, I think Trip Insurance being primary is a nice feature, but not one I'd pay extra for either.

[6rugrats]

 

What happens if you're on Medicare or some other insurer that won't cover you outside the country? Since your travel insurer is no longer "secondary" to any other insurance you have in place it, by default, becomes your "primary" insurer.

Yes, but IME, the travel insurance provider is still going to want you to bill Medicare and provide them with that denial before they will pay. Ridiculous, but the way it usually is.

[cruiseco]

Yes, but IME, the travel insurance provider is still going to want you to bill Medicare and provide them with that denial before they will pay. Ridiculous, but the way it usually is.

 

Not always. For example, CSA has on their form a waiver(??) you can sign stating that you do not have any other valid health insurance in place. If you're sure that you have no other coverage that will pay all or part of the bill you sign it and skip having to submit to Medicare of whatever -- just submit straight to CSA and skip that step.

[6rugrats]

True, and that's why I wrote, IME. I had a very long battle getting a very large medical bill paid and had to go back and forth between insurance purchased through Princess and the person's Medicare coverage (some treatment for this illness was in the US, some on the ship and it was complicated). It was a PITA. By the time the claim was finally settled, the person had passed away, but it was paid.

[klpsmom]

So, basically, I would have to pay upfront and submit to both, which sounds like a total PIA, but it is what it is. With the Global Alert policy, they do state that they would pony up $ to get you admitted for hospital care. That seems confusing-wouldn't they want primary to pay first?

 

I'm leaning towards finding a primary plan, but the only one that has all the other coverages I like, only offers $100K medical as opposed to the $250K with Globals secondary. I fear exceeding the policy limit and then not having back up. Ugh.

 

To confuse things even further, I actually already have primary and secondary insurance through BCBS and Tricare, but my family only has primary coverage through Tricare. Not sure how that would play out. I need to call Tricare.

 

Someone stated that certain states have laws regarding Medical and Travel ins and who would be primary etc. Anyone know how it works in Florida? I've tried the University of Google, but have come up with zilch.

 

THanks!

[cruiseco]

So, basically, I would have to pay upfront and submit to both, which sounds like a total PIA, but it is what it is. With the Global Alert policy, they do state that they would pony up $ to get you admitted for hospital care. That seems confusing-wouldn't they want primary to pay first?

 

 

They only do this if you have exhausted every other means you have to come up with the money -- credit cards, friends and family etc.

 

And they're not paying your hospital bill or approving any claim. They're basically making a personal loan to you and if, when everything has been figured out, your claim is denied you will be expected to pay it back.

 

For example, say you're taken to a hospital for treatment and the hospital wants $10K upfront just to let you in the door and your credit cards won't handle that. The insurer will arrange direct payment to the hospital to guarantee admission and/or pay the bill to get you released.

 

But once you have been seen by the doctor they discover you're there because of a heroin overdose which is going to be specifically excluded from their coverage. That claim will never be paid by the travel insurance and you (or your regular health insurance) will have to repay the $10K.

[klpsmom]

Appreciate your input!