Closing the coverage gap

High-deductible health plans (HDHP) are quickly becoming standard operating procedure for a lot of employer-sponsored plans. But for many employees, meeting these high deductibles can be a challenge.

To help close this coverage gap, groups can supplement a major medical policy with a fixed-payment insurance plan that complements the benefits outlined in the HDHP. A fixed-payment plan pays a preselected benefit amount for covered services, up to a calendar year maximum. When structured as a medical gap plan, they can offer employees some relief from the financial pressure of meeting their deductibles, while still lowering employers’ monthly premiums and encouraging health care consumerism. This balance is achieved by carefully crafting a medical gap plan that complements—not duplicates—the benefits currently offered in the HDHP.

To learn more about medical gap plans, check out our Inside Track educational paper.