Health Insurance Not Covering Enough? 5 Reasons To Consider Secondary Insurance
Written by
Emily Fowler
Edited by
Jenna Klaverweiden
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Having insurance doesn’t always mean being fully covered, with many Americans still facing big bills for basic care, let alone anything unexpected.
According to KFF, annual premiums for employer-sponsored family health coverage hit $25,572 in 2024, with workers paying an average of $6,296 out of pocket. The average deductible for single coverage now stands at $1,787 — money that has to come out of pocket before insurance kicks in.
GOBankingRates spoke with two experts about when secondary insurance might be needed and what to know before making a move.
Coverage Gaps Leave Too Much Exposed
Basic policies rarely handle everything. Many treatments, specialists or medications simply aren’t included in standard plans.
Kris Barber, founder and principal attorney at The Barber Law Firm, explained that secondary insurance can help with expenses “like vision care, dental treatment, co-payments or even deductibles.”
Out-of-Pocket Costs Are Too High
High deductibles and frequent co-payments can strain even those with good coverage.
When costs start stacking up, secondary insurance “can relieve your burden considerably” by helping cover what primary leaves behind, according to Barber.
Specialized or Ongoing Needs Demand More
Frequent appointments, therapies or medications, especially for chronic conditions, can burn through coverage fast. Patients with recurring care needs may often benefit from secondary plans that fill in those regular, costly gaps.
Medicare Isn’t Enough on Its Own
For Medicare beneficiaries, Original Medicare doesn’t cover everything. Eligible senior patients can “consider Medigap policies to enhance coverage for expenses not included in Original Medicare — coinsurance and deductibles,” according to Barber.
Access to Secondary Insurance Is More Flexible Than Expected
Secondary coverage doesn’t have to be complicated to get.
According to Melanie Musson from InsuranceProviders.com, it’s often available through a spouse’s employer, via the Affordable Care Act marketplace or even as a separate policy for those on a parent’s plan. Private insurance firms and government programs also offer supplemental plans for those who qualify.
Is an HSA or FSA Smarter?
Sometimes a separate insurance policy isn’t the best tool. If secondary insurance isn’t an obvious need, a flexible spending account (FSA) or health savings account (HSA) might be the better move. Musson explained it’s a good option because “instead of paying premiums, you can put your money in an account where it grows.”
HSAs, for those with high-deductible health plans, offer rollover benefits, investment growth and portability. FSAs, while less flexible, still provide tax advantages for near-term medical expenses.
Both options may be better suited for covering moderate, expected out-of-pocket costs, without committing to ongoing premiums.
Deciding What Works
Not every situation calls for secondary insurance, so weighing the cost of premiums and deductibles against the expected benefits is a good place to start.
If the numbers line up, coverage can make a real difference. If not, a tax-advantaged account might offer more freedom and financial control.
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