Secondary insurance is best described as:

Secondary insurance is best described as an insurance that covers additional expenses not covered by primary insurance. This means that once the primary insurance has processed a claim and settled the payment, any remaining costs that the primary insurance did not cover can be submitted to the secondary insurance for further consideration. This can include deductibles, copayments, or coinsurance amounts that the patient is responsible for after the primary insurance payout.

Having secondary insurance is beneficial for reducing out-of-pocket costs for patients, as it may help cover expenses that would otherwise be their responsibility. It is designed to complement the primary insurance rather than to replicate its benefits or cover identical services. Hence, it plays a crucial role in the revenue cycle by helping to maximize the reimbursement for healthcare providers and minimize the financial burden on patients.