In health insurance, what does the term "primary policy" refer to?

In health insurance, the term "primary policy" refers to the policy that is designated to pay first in the event of a claim, covering expenses up to its specified limits before any other policies contribute to the payment. This primary coverage is crucial, especially for individuals who may hold multiple insurance policies. It ensures that claims are processed efficiently, with the primary insurer addressing the costs associated with medical care or services provided, up to the limits of that specific policy. After this primary coverage has been applied, any additional policies may come into play to cover remaining expenses, but they will only do so once the primary policy has exhausted its coverage limits.

This understanding is key for consumers as it aids in navigating their benefits and helps in planning for potential out-of-pocket costs.