“The savings in premium for the high deductible plan could be used to purchase this product and lighten the impact of the high deductible by chance a large claim is incurred.”
– Employee Benefits Specialists
With the average bronze-level major medical plan averaging over $13,000 for a family deductible, a product many employers have turned to is Gap Insurance. Gap Insurance is used to bridge the “gap” created with high deductible medical insurance. Instead of having to go out-of-pocket thousands of dollars if an employee has a medical event, individuals and families elect to pay a little each month in Gap Insurance premiums.
This allows them to use the policy in case of an accident, injury, or other unforeseen large medical expense instead of having to meet the deductible first. For some families, this product is a lifesaver. Our average Gap Insurance client has a $5000 annual deductible but only pays $250 out-of-pocket combined with their monthly gap premiums. But for some of our other clients, we offer a myriad of better suited voluntary products that are less expensive and fit better with their lifestyle and budget. In any event, deductibles are not going down anytime soon (if ever) so understanding if Gap Insurance works for you and your company is in your best interest.