Understanding Secondary Insurance Coverage: How MWG’s Premium Saver Plan Bridges the Gap

August 12, 2025

Healthcare costs keep rising, and employers and employees alike are looking for ways to manage expenses without sacrificing quality coverage. That’s where the Premium Saver Plan can help.

The plan works alongside your high-deductible health plan (HDHP) to help pay certain medical expenses before you meet your primary deductible. It’s a simple, affordable way to protect your team and lower the financial stress of healthcare costs.

What is Secondary Insurance Coverage?

Secondary insurance coverage, like the Premium Saver Plan, is a group supplemental health plan that works alongside a high-deductible major medical plan (HDHP).

For 2025, the IRS defines an HDHP as having:

• A minimum deductible of $1,650 for self-only coverage
• $3,300 for family coverage
• Out-of-pocket maximums of $8,300 for self-only and $16,600 for family coverage

The Premium Saver Plan helps bridge the gap by covering some of the out-of-pocket expenses that occur before the HDHP deductible is met—earning it the nickname “insurance for your insurance.”

Employers who increase the deductible on their primary medical plan often see noticeable savings on premiums. As healthcare costs continue to rise under the Affordable Care Act, more companies are turning to secondary insurance coverage like the Premium Saver Plan as a way to offer meaningful benefits while controlling costs.

Keep in mind: secondary insurance is a supplemental plan. It does not replace major medical insurance and is not considered ACA minimum essential coverage.

What Does Secondary Insurance Cover?

The Premium Saver Plan works with a company’s primary medical plan. It reimburses either the insured or the provider based on what the primary plan shows in the Explanation of Benefits (EOB).

The plan pays benefits according to a set Schedule of Benefits, up to the maximum allowed amount. Some plans may require insureds to meet a smaller, separate deductible or coinsurance amount first.

The Premium Saver Plan helps cover:

• Expenses applied toward the major medical deductible
• Coinsurance amounts

It generally does not cover:

• Professional fees for doctor office or clinic visits
• Outpatient prescription drugs
• Vision or dental care
• Copayments

Is Secondary Insurance Coverage Worth It?

It depends on the situation. Employees with ongoing medical needs or high out-of-pocket expenses usually see big benefits from secondary insurance like the Premium Saver Plan. Even employees with fewer medical expenses may appreciate the peace of mind it offers for unexpected healthcare costs.

For employers, the Premium Saver Plan is a smart way to enhance your health benefits without breaking the budget. Companies often lower their group medical premiums by 10–20% while also giving employees relief from high out-of-pocket costs.

Example:

Ready to Learn More?

Interested in offering better benefits at a lower cost? Contact MWG Broker Services today to see how the Premium Saver Plan can help a business and its employees.