
DETAILS AND ADVANTAGES
What is a "gap insurance plan"?
Gap Health Insurance is a group supplemental health plan that works along with a high-deductible major medical plan. As the name implies, gap insurance helps pay for medical costs that occur before reaching the deductible, which has led to people calling it “insurance on insurance”. It is important to note that gap health insurance is not major medical nor ACA compliant. It is a supplemental policy.
With a gap plan, a business can offer gap health insurance that keeps out-of-pocket expenses for employees down while spending less than they would if they had a higher priced plan with a lower deductible. If your major medical deductible is $1,000 and your gap plan deductible is $500, then the employee will only have to pay $500 in out-of-pocket costs.