In 2018, half of all people with employer-provided health insurance had a deductible of at least $1,000.
That means if you need treatment, you can be left with a steep bill to pay, despite the fact that you are insured.
That’s where gap health insurance comes into play. It can help you to reduce the amount that you’ll be out of pocket in the event of needing medical treatment.
Read on to learn more.
What Is Gap Health Insurance For?
Gap health insurance is exactly what it sounds like. It’s designed to fill the gap left by your deductible, ensuring that you don’t have to shell out hundreds or even thousands of dollars for your medical treatment.
It’s not just about covering your deductible, however. Gap health insurance can also cover some other expenses such as the cost of prescription drugs, and even some non-medical expenses.
If you have a Medicare plan, there are Medicare supplement insurance plans that you can take out too; read more here to learn what they are.
What Does Gap Health Insurance Cover?
Gap health insurance can cover a number of different areas.
As we have already seen, it can pay out a lump sum to cover the cost of expensive deductibles. It can also cover the costs of copayments or coinsurance too.
If you need to seek treatment outside of your approved network, then gap health insurance can also help with some of those costs. This can include seeking complementary treatments.
Some policies can cover prescription medications costs, but also other out-of-pocket costs such as groceries, transportation, and other costs incurred whilst you are seeking treatment.
The exact cover will depend on your policy, so always read the small print carefully to be sure of what exactly is and isn’t covered.
How Much Does Gap Health Insurance Cost?
The cost of your gap health insurance will depend on your personal circumstances and the cover you choose to opt for.
Expect to pay in the region of $30-$50 per month on average for a good quality gap health insurance policy. You need to consider what would happen if you needed expensive treatment; would you be able to cover the deductible on your current health insurance? Even if you could, you may still consider that a gap health insurance policy would be worth it just for the peace of mind it offers.
If you’re not sure, talk to some providers and ask for some quotes; you can then see exactly how much you’ll need to pay, and what you’ll be getting for your money.
Is Gap Health Insurance for You?
The only person who can really answer whether gap health insurance is something worth taking out is you. Remember that gap health insurance is intended to reduce the impact of large deductibles. If you don’t have a large deductible then you don’t need it, but if you do, gap health insurance could save you a small fortune if you ever need treatment.
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