Buy Gap Insurance for High Deductible Healthcare Plans

GAP health insurance

An increasing number of Americans are now considering buying gap insurance covers or what are popularly known as supplemental health insurance plans. The main reason for this is conventional healthcare coverage have substantially higher premiums even if buyers choose high deductibles. To keep these out-of-pocket expenses in check and save money on rising premium costs, it could be worthwhile to purchase gap covers. Although it’s hard to find health insurance policies that cover a person’s specific healthcare needs and requirement, buying a supplemental health insurance cover can prove to be an effective support during unforeseen medical emergencies.

What Exactly is Gap Insurance?

A medical gap insurance policy or a supplemental healthcare plan serves as a bridge between buyer and his employer that offers high deductible group health insurance cover. A typical gap insurance cover offers limited benefits and in most cases, the policy will pay a pre-set amount for medical expenses. It means gap insurance is not for major medical treatments or surgeries and so, cannot be used as a standalone policy. By using gap insurance, you can curtail out-of-pocket expenses on your high deductible healthcare plan. Once the proceeds of pre-specified coverage limit is exhausted, the regular health insurance cover kicks in.

How Much Does Gap Insurance Cost?

Premiums for gap insurance policies can range from $30 to $40 per month but they are likely to vary from company to company. Companies use several factors for assessing risks involved in providing gap healthcare coverage to an individual and family. These parameters may include person’s age, gender, residential location, etc. You can buy gap insurance plan from companies like Aetna, AIG, Transamerica or such other large national carriers. It will help in supplementing your government subsidized, employer provided or even personal health insurance plan. Besides, gap plans are not regulated by Affordable Care Act and so, insurers may deny coverage for pre-existing conditions.

When Should You Buy Gap Insurance?

You may think of purchasing a gap or supplemental healthcare insurance policy if you expecting hospitalization later during the year. This includes situations like planning a baby or undergoing some surgery as gap insurance will reduce your out-of-pocket or deductible expenses. Alternatively, you can also purchase gap insurance to get reimbursements for expensive prescription drugs that are not covered by major medical insurance policies. In addition, people, who are 65 years in age or above, are likely to find gap insurance covers extremely useful.