Health Insurance with GAP Coverage: Shielding Your Business and Your Team from Unexpected Costs
Will Parsons
High-deductible health plans (HDHPs) can be a cost-saving strategy for employers—but for employees, they often mean thousands of dollars in out-of-pocket expenses before coverage even kicks in. That’s where GAP insurance comes in.
At Parsons Employee Benefits, we help businesses across Alabama, Texas, Georgia, and Tennessee combine health insurance with supplemental GAP coverage to create smarter, stronger employee benefits packages that work for everyone.
What Is GAP Insurance?
GAP insurance is supplemental coverage that bridges the financial gap left by HDHPs. It helps pay for deductibles, copays, coinsurance, and other out-of-pocket costs not covered by a primary health plan.
Think of it as a safety net—when an employee faces a large medical bill, GAP coverage steps in to reduce their burden and protect their financial stability.
Why Employers Offer GAP Insurance
Employers choose to offer GAP insurance for three key reasons:
- Reduce Employee Stress: Medical costs can derail financial wellbeing. GAP insurance helps employees afford care when they need it—without hesitation or worry.
- Control Costs: Pairing a lower-premium HDHP with GAP coverage often costs less than a traditional low-deductible plan, while still providing meaningful protection.
- Strengthen Your Benefits Strategy: Offering GAP insurance demonstrates your commitment to employee wellness—and can be a key differentiator when attracting and retaining talent.
How GAP Insurance Works
When an employee receives medical care under an HDHP, they may face high out-of-pocket costs before their plan covers expenses. GAP insurance kicks in after the primary plan processes the claim and provides an Explanation of Benefits (EOB). Depending on the policy, the GAP coverage either reimburses the employee or pays the provider directly for the remaining eligible costs.
What Does GAP Insurance Cover?
Coverage can vary, but most GAP policies include:
- Inpatient hospital stays
- Outpatient procedures
- Emergency room visits
- Deductibles and coinsurance
- Diagnostic tests and imaging
Some policies also offer optional benefits for critical illness, accidental injury, or even lost income during recovery.
Real Value for Your Business
Let’s say you’re offering a Bronze-level HDHP with a $6,500 deductible. A GAP plan that covers up to $5,000 of that deductible significantly reduces the employee’s out-of-pocket risk—while your business still benefits from the lower premiums of an HDHP. It’s a win-win strategy for smarter healthcare spending.
Why Choose Parsons Employee Benefits?
At Parsons Employee Benefits, we specialize in designing high-impact, cost-effective benefits solutions for small and mid-size employers. We help you:
- Compare HDHP and GAP pairings
- Select policies that align with your budget and workforce
- Administer and manage the entire plan—seamlessly
And most importantly, we offer real, hands-on support—so your employees never feel left in the dark.
Ready to Offer Smarter Health Coverage?
Let’s design a better benefits strategy—one that protects your team, respects your budget, and sets your business apart.