Here are four things to know about the increasing use of gap plans.
1. With growing monthly health insurance premiums, consumers are choosing plans with lower premiums and higher deductibles. More than 90 percent of enrollees through Affordable Care Act exchanges had an average deductible of $3,000 or more in 2016.
2. Gap insurance is a “limited benefit,” meaning the plan will only pay a certain amount of a policyholder’s deductible.
3. Employers are offering gap plans in their health benefits package to keep costs down. Some employers spend less on gap plans and HDHPs combined than on more expensive, lower deductible plans.
4. Since gap plans are not a form of major health insurance, they do not need to comply with rules outlined in the ACA. The insurers offering the plans can deny coverage based on preexisting conditions, according to the report.
More articles about payer issues:
Employer family plan premiums soar above $18k in 2016
ConnectiCare backtracks, stays in ACA exchange
10 questions to ask your boss about your health plan
