GAP Strategies to Fit Every Type of Benefits Client

  • Posted on July 26, 2017
  • by Admin

GAP plans (Group Supplemental Health plans) are used to fill in holes in HDHPs that most employers offer today – similar to “Medigap” supplemental insurance plans used by Seniors. But these plans are available to anyone, and are considered excepted benefits under ACA guidelines. Offering these alternative or additional coverages can bring additional business to your agency and drive increased commissions. There are three GAP strategies that make a compelling case to clients and prospects:

“Insured HRA” strategy. Save money and duplicate or improve existing coverage. Combining a Bronze plan with GAP plan(s) can offer savings and even offer employees better coverages.

“Cadillac Tax” strategy. ACA Bronze plan base coverage, then allow employees to “pick and purchase” the right amount of GAP coverage.

“Private Exchange” strategy.  One Bronze plan base plan with multiple “buy up” GAP options. Instead of offering several major medical plans, simply give employees a strong network PPO Bronze plan and offer them several GAP plan options to “pick and purchase” the levels of GAP coverage they desire.

To learn more about how gap strategies can grow your book of business and drive increased commissions, contact us.

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