Group Supplemental GAP Plans
What Is Group “GAP” Insurance?
Group Supplemental Health plans called “GAP” plans are used to fill in holes in high deductible health plans HDHPs now being offered to workers today. They are similar to the “Medigap” supplemental insurance plans millions of Seniors purchase each year to fill in holes in Medicare parts A&B.
Types of GAP Insurance
Employees win, since most have small claims now we can provide them 100% coverage at lower rates, while the large claims have much lower out of pocket as well.
Example: if we GAP a $6,650 HDHP with $5000 of GAP the first $5,000 is now 100% paid and the Out of Pocket is now only $1,650 on the tail end of a large claim, giving most employees 100% coverage with no copays as well, for a lower cost than a conventional $3,000 deductible plan.
Bottom Line: Employers save money by using a Bronze plan plus offering several upfront deductible GAP options for employees to pick and purchase.
“Insured HRA” strategy-save money and duplicate or improve existing coverage.
Combining a Bronze plan with GAP plan(s) can offer savings and even offer employees better coverages.
Instead of offering several major medical plans, simply give employees a strong network PPO Bronze plan and offer them several GAP plan options to “pick and purchase” the levels of GAP coverage they desire.