What is a beneficiary in health insurance?

What is a beneficiary? The beneficiary is enrolled in a health insurance plan and receives benefits through the policy in the form of paid claims and/or network-negotiated rates for the portion of the claim that the beneficiary has to pay. A beneficiary can have any type of health insurance, including Medicare, Medicaid, or private coverage.

What is an example of a beneficiary?

For example, when a person enrolls in a retirement plan or creates a will, they will name a beneficiary who will receive profits or other benefits, typically on the death of the benefactor. In healthcare, a beneficiary can refer to individuals who receive health insurance through a private health plan, Medicare or Medicaid .

Who is a primary beneficiary in health insurance?

A primary beneficiary in health insurance is the designated individual or entity who has the first right to receive the benefits of the policy upon the policyholder’s death. The primary beneficiary is explicitly chosen by the policyholder and holds the highest priority in receiving the insurance proceeds.