Reliable health insurance is a very crucial benefit that every business owner should offer to employees. The thing is, a great health insurance plan doesn’t isn’t exactly cheap. Plenty of employers, however, combat this issue by offering their employees optional gap healthcare insurance coverage.
This specific type of insurance plan makes it easier for employees and employers to pay off their initial health insurance coverage. Generally speaking, gap health insurance can cover the deductible for the primary health insurance as well as medical costs that occur before the deductible being paid off.
But it’s still a good idea to discuss specific coverage with your hospital gap insurance provider. That being said, here are vital points to consider when considering offering gap healthcare insurance coverage to your employees.
Who’s Your Target Demographic?
This type of health insurance coverage is geared towards certain kinds of individuals. But while some might not require additional health coverage, this is something that your employees need to really understand.
Although everyone can opt to sign up for gap insurance, this kind of coverage will work best for individuals who require costly maintenance medications. Also, this benefits those who are older and those who constantly find themselves in and out of the hospital.
Combating High Health Insurance Deductibles
Having gap insurance coverage is an excellent way of offsetting the high deductible of employees’ primary health insurance plans. If you offer a reliable health insurance plan to your employees that come with a high deductible, gap insurance coverage could help reduce your employees’ worries about paying off their deductible.
Better Than a Health Savings Account
While some individuals might think that an HSA or health savings account is basically the same thing as a gap health insurance policy, gap coverage can offer certain advantages over HSAs. For starters, the cost of gap coverage is roughly around $50, and it covers all that a primary health insurance plan includes.
An HSA requires a contribution, pre-tax before you could even start taking out a limited, predetermined amount. Also, while an employer could finance part or all of the HSA, it would be taken out of the individual’s pay. This amounts to about $500 per month – something that not all employees could comfortably afford.
The most significant benefit that a gap healthcare insurance policy affords is that employees are guaranteed the best protection that they can certainly provide. Put simply; think of it as an insurance policy for your primary health insurance policy.
There’s no denying that offering gap healthcare insurance coverage to your employees is a must if you truly want the best for them. With the ever-increasing medical expenses and health insurance costs, having that safety net and buffer could be extremely valuable.
Aside from reducing your employees’ out-of-pocket healthcare costs, it can likewise complement your primary health insurance coverage perfectly. You just need to find the right hospital gap insurance provider and explain what gap health insurance coverage can give your employees to ensure that they make well-informed decisions.