The cost of healthcare has steadily risen over the past few decades. One way that companies work to reduce this financial burden for their employees is by providing solid insurance options that cover everything from hospital visits to annual check-ups. Yet, even the best medical insurance may come with expenses that just aren’t covered. These out-of-pocket payments can quickly add up for your employees. Fortunately, gap health insurance can solve this problem. If you’re wondering if a gap plan is a good option for your company, read on to learn more about this unique policy type.
What Is Gap Insurance?
Gap insurance is a supplemental insurance policy type that works in conjunction with an existing major medical plan. Typically, this plan works well with a high-deductible health plan (HDHP). Under the IRS, for 2023, a health plan is considered HDHP if the deductible is at least $1,500 for individuals and $3,000 for family units.
As a supplemental insurance option, gap plans often step in to reimburse employees for what would otherwise be out-of-pocket medical expenses. Typical gap plans include coverage for critical illnesses such as cancer, heart attack, kidney failure, stroke, or coma.
The Benefits of a Gap Insurance Plan
Gap plans have many different benefits that employees and employers can take advantage of. Most prominently, they work to extend your employee’s coverage options, they cover some of the costs associated with certain deductibles, and they work to protect your employee’s income. By providing this extra layer of coverage, employees won’t have to dip as far into their savings accounts or paychecks to cover a surprising healthcare expense.
Gap plans typically help individuals by providing lump-sum cash benefits for accidents and serious illnesses. They may also include coverage for deductibles for a wide range of both inpatient and outpatient procedures.
Who Needs Gap Insurance?
As with most supplemental insurance types, the answer depends on your current coverage options and also what coverage you hope to offer employees. Gap plans can be drastically different between companies and policies, so it’s important to make careful considerations before you commit to a plan.
Keep in mind that gap plans typically won’t cover deductibles on common claims including doctor’s visits and prescriptions. However, if your goal is to provide employees with additional coverage for inpatient and outpatient procedures–as well as certain diagnostic tests–this policy type may be perfect for you.
Traditionally, gap plans work best with companies that are mid-sized or smaller and haven’t been able to self-insure yet, but they can work well for any business whose employees face high deductibles that are difficult to meet.
Beckham Insurance Group Has You Covered
If you’re considering a gap insurance policy for your company, it’s important to speak with a professional to determine if this is the best supplemental policy for your company. There are several other supplemental policies that exist, and they each offer their own unique benefits.
If you need help navigating the complicated world of employee benefits, our team at Beckham Insurance group is here to help. Located in Charleston, SC, and St. Simons, GA, we are proud to offer full access to all group health and supplemental insurance markets and products! Creating a competitive benefits package that meets the needs of your business couldn’t be easier. To get started, contact us today for a free quote. We can’t wait to help you create a healthier and happier workplace!