What Is Group “GAP” Insurance?
Group Supplemental Health plans called “GAP” plans are used to fill in holes in high deductible health plans HDHPs now being offered to workers today. They are similar to the “Medigap” supplemental insurance plans millions of Seniors purchase each year to fill in holes in Medicare parts A&B.
These plans are considered “excepted benefits” under ACA meaning that they operate outside many of the rules of Obamacare. They are offered only as supplements to existing major medical plans and only cover certain inpatient and outpatient deductibles and coinsurance costs.
Most GAP plans do not cover the professional fee in a doctor’s office nor outpatient prescription drugs. Because of this, Advisors generally recommend Employers purchase at least a Bronze major medical plan with doctors office and prescription copays to complement any GAP plan.