Employers offering Gap Insurance Plans to cover Out Of Pocket Expenses
Several employers are now offering employees Gap Insurance Plans to help pay for out of pocket expenses. The trend is clearly growing since healthcare cost have been push down to the healthcare consumer. The idea is to offer the healthcare consumer a Gap Insurance Plan to help budget for medical expenses. The idea makes some sense.
The typical Gap Insurance Plan provides for expenses such as hospital stays, unexpected accidents, benefits for acute illnesses, high deductibles and co pays. Several plans are hospital indemnity plans that cover hospital stays while others cover critical illnesses like cancer, heart disease, etc… that pay a lump sum based on the diagnosis. Lump sum payments can start at about $5,000 and go up to $10,000-$30,000 based on the policy limits.
The policies are generally inexpensive ranging from $5 to $25 per two week pay periods. Cost can vary based on the policy holders age and how much coverage is purchased. In some cases, the employers are contributing to the premium expense.
Healthcare consumers need to determine how much risk they are willing to assume. Those consumers willing to assume more risk may opt for a Health Saving Account, while others will purchase a Gap Insurance Plan.