Medical Gap Insurance: How Employers Can Decrease Insurance Cost While Providing Top-Quality Healthcare Plans
By: Danny Rhyne, Employee Benefits Account Executive
In 2018, according to the National Conference of State Legislation, the average annual premium for employer-based family coverage rose 5 percent to $19,616. With health insurance premiums on the rise, it’s no wonder employers are looking for ways to cut costs while still taking care of employees.
When you don’t want to sacrifice providing quality healthcare, there are many reasons to take a closer look at the benefits of providing a medical gap plan.
What is medical gap insurance?
Given the rise in premiums, many Americans are opting for a healthcare plan with a high deductible in order to lower their monthly costs. Of course, on the other side of this, is the fact that they must then pay out-of-pocket until this deductible is met.
Well, that’s where a medical gap plan can be beneficial.
A medical gap plan is essentially a secondary insurance policy that coincides with an employee’s Blue Cross and Blue Shield of Alabama (BCBS) plan. This gap plan, with a low premium, will help the employee with copays and deductibles. It would fill in the gap, so to speak, that exists between the BCBS policy and annual deductible.
In 2017, the average deductible for single (individual) coverage was $1,505, according to the Kaiser Family Foundation.
How Employers Can Benefit from Offering Medical Gap Insurance
While a medical gap plan can mean major savings for your employees, there are many ways you’ll benefit as well. If and when an employee has to go out, it would help keep you from having to come out-of-pocket for either inpatient or outpatient medical procedures.
Also, it’s certainly going to help in the fact that the employees are going to feel that their employer is going above and beyond to help with them and their family’s health insurance needs. In this day and age, while quality healthcare coverage can be a great incentive, most would agree that it even has the ability to help you hire and retain top talent in your industry.
A medical gap plan doesn’t make the insurance more of a hassle either. The usage of secondary insurance is becoming more and more of an everyday process, and it simply involves getting the employee to make sure their healthcare provider takes down this secondary insurance, or gap insurance, just like they do their BCBS information.
Premium Healthcare at a Lower Price
As annual deductibles and out-of-pocket maximums increase, it greatly benefits both the employee and employer to have a medical gap plan in place. Even with all the advantages, I haven’t come across any real downfalls of providing this plan to employees.
If it means anything, here at Thompson Insurance, we like to eat what we’re cooking, so to speak, and the fact is that my wife, daughter, and myself are covered by a gap plan. If
I’m going to cover my loved ones in this manner, then I certainly believe in it.
Every employer wants the ability to offer premium healthcare coverage at a price their employees can afford, and a gap plan is a great way to do just that.
Learn More About Medical Gap Insurance from Thompson Insurance in Birmingham and Montgomery, AL
Are you ready to be a customer of Thompson Insurance with locations in Birmingham and Montgomery, AL? Contact one of our Thompson Insurance Agents today to learn how our services can best fit your individual needs. Give us a call today at 334-277-8970.
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