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Is double dipping illegal, or just frowned upon?
Old 05-25-2007, 12:37 AM   #1
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Is double dipping illegal, or just frowned upon?

My MegaCorp said that they would not coordinate with another (DW's) company, if we were respectively second on the other policies. Does that mean that if we were paying for the premiums for the insurance anyway (excess over what the MegaCorp was providing), that we could turn in the original bill from Hospital/Doctor to the secondary and have them pay to us, based on their respective discount and schedules? This might mean that we would collect more then our out-of-pocket expenditures, if we could do this. Is this legal, or at least not illegal. Is it just that the insurance companies don't like it, but "oh well"?
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Old 05-25-2007, 04:21 AM   #2
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Quote:
Originally Posted by whitestick View Post
My MegaCorp said that they would not coordinate with another (DW's) company, if we were respectively second on the other policies. Does that mean that if we were paying for the premiums for the insurance anyway (excess over what the MegaCorp was providing), that we could turn in the original bill from Hospital/Doctor to the secondary and have them pay to us, based on their respective discount and schedules? This might mean that we would collect more then our out-of-pocket expenditures, if we could do this. Is this legal, or at least not illegal. Is it just that the insurance companies don't like it, but "oh well"?

Not sure... But my guess is that at least one of the companies has a rule regarding what they will pay. I suspect they are not intending to reward you for using medical services (this encourages you to get a check or a service as often as possible)... It is likely to be consider insurance fraud. Just because they indicate they will not coordinate... that does not mean it is legal. I would also be a little careful of just calling the 800 number and asking some clerk... they are likely to not know and give you bad info so do not rely on it.

Suggestion: Use the insurance to recover legitimate expenses and be glad you have insurance. Otherwise, you might get to retire early with all room and board paid at the cross-bars resort, complements of the government.
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Old 05-25-2007, 05:59 AM   #3
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I guess you really know you're retired when double dipping means going to the all-you-can-eat buffet for lunch, and staying through dinner.
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Old 05-25-2007, 06:55 AM   #4
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Putting in the same claim to two insurance companies is illegal...

What can happen, but not always, is that one is primary and one secondary...

So, say both will pay 80%.... you can put the claim to your primary company and get 80% back... now, you put the remaining 20% claim into the second insurance company (as a secondary claim) and they pay 80% of that bill.... or net 16% of the total bill... so your net is only 4%... my BIL does this all the time...
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Old 05-25-2007, 07:02 AM   #5
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Not unusual. First Company pays their portion and pass the remainder to the Second Company and they pay their portion and COULD pass it to a Third or Fourth Company for their respective portion. Works fine as long a premiums are paid to each respective company. It would border on or be FRAUD to submit the FULL bill to each company as the primary payer. There are few "free rides" in life and maybe especially so in the Insurance Industry. They are ALWAYS on the lookout for FRAUD and will, many times, make a LEGAL EXAMPLE of someone who attempts it.
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Old 05-25-2007, 01:51 PM   #6
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Notice that when you go to a clinic or hospital they ask for a list of all your insurance? The first one should be the 'primary', insurance through your employer or Medicare. All the others are secondary.

My BC policy insists that I fill out a list of other health policies every year. My theory is let them pass the bills around until the merry-go-round stops.

Health insurance is so expensive and most employers let couples pick one for the entire family each year (or enroll with certain employment/family events). They always want proof of continuing insurance, a reasonable expectation. Likewise, they don't want their contribution to be wasted.
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Old 05-25-2007, 03:23 PM   #7
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as long as you rotate the chip, i don't think it's considered a double dip!
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