Final answer:
The term used when another insurance policy is primary to Medicare is commonly referred to as coordination of benefits. The primary insurance policy pays first before Medicare. Medicare serves as a federal health insurance program mainly for those over 65 or with certain disabilities and functions as secondary payer in cases where another policy is deemed primary.
Step-by-step explanation:
The term used when another insurance policy is "primary" to Medicare is known as coordination of benefits. This happens when a person is covered by both Medicare and another health insurance policy. The primary insurance policy pays first, and Medicare pays second, acting as the secondary payer. In situations where an individual has both a private insurance plan and Medicare coverage, the private plan is usually considered the primary insurer if the person is still actively working or has coverage through their spouse's employer. Hence, the private insurance would pay for covered services first, and Medicare would then cover any remaining eligible costs.
Enacted through the Social Security Act of 1965, Medicare is a federal health insurance program for individuals over the age of 65, as well as for younger individuals with certain disabilities. It was created because private health insurance costs for the elderly are typically higher due to the increased healthcare needs associated with aging. Similarly, the Medicaid program was established to help those with low incomes afford healthcare. As social insurance programs, both Medicare and Medicaid provide essential health services to eligible populations.
It's also important to understand that other insurance policies may include employer-based coverage, retiree coverage, and insurance from the Veterans Administration. Before Medicare pays, these policies will generally cover eligible expenses first as the primary payer if the person meets the policy criteria for this coverage to apply as primary to Medicare.