What is MSP medical coverage?

Medicare Secondary Payer coverage refers to a situation in which another health insurance provider has the primary responsibility to pay medical claims for an individual, with Medicare only responsible for secondary coverage, explains the Centers for Medicare and Medicaid Services. Medicare became a secondary payer to many plans in 1980.

Before 1980, unless a medical claim was covered by federal black lung benefits, Veteran's Administration benefits or workers' compensation insurance, Medicare was the primary payer, notes the Centers for Medicare and Medicaid Services. Congress passed legislation to allow Medicare to become a secondary payer to protect Medicare funds in situations in which an insured person has other primary health insurance coverage.