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Why Your Gap Plan is Having Rate Increases

When GAP Insurance first came on the scene it was a “No-Brainer” to show an employer how they could move from a low-deductible health insurance plan to a high deductible plan and use GAP insurance to “bridge the GAP”. Therefore, GAP insurance or Bridge insurance became quite popular.

As we have seen in the past 6-7 years, GAP Insurance has made healthcare very accessible to workers by giving first dollar coverage to people who have been historically not been able to get medical care unless they fulfilled their deductible requirement, paid co-pays, and with some plans had to pay large sums of money become of co-insurance. At this stage, GAP insurance rode in on a white horse as the answer to the solution.

Now looking back over the past 5-6 years, we see an environment that has almost annual rate increases. What most brokers have been doing is moving their business to a new carrier or a new Third-Party Administrator at renewal time. It has been easy to blame the carriers or to blame the TPA’s. The truth is the problem has always been in the plan design.

GAP insurance in Alabama has a well-earned reputation for over-promising to the business and under-delivering by having to move the business regularly to avoid another rate increase. The biggest problem with this way of conducting business it is may end up being like the game many children play called “Hot Potato”. You do not want to be the one sticking your clients in a bad situation with marginal insurance carriers.

At Providence Benefits, LLC, Andy Martin, CLU, ChFC spent a year studying the GAP marketplace to see what was wrong with it. We came up with a concept and service marked it called “SUSTAINABLE GAP”.SUSTAINABLE GAP” is  a great concept but we all know Albert Einstein’s famous quote, “Insanity is doing the same thing and expecting new results”.  If you are tired of constantly having rate increases which force you to change carriers or change Third-Party Administrators, you may want to get educated on Providence Benefits, LLC’s proprietary concept of “SUSTAINABLE GAP”.

While no plan can guarantee there will not be rate increases, GAP has not had consistent rate increases in other states like it has the state of Alabama. If you are concerned about your clients getting caught up in a game of “Hot Potato” with their GAP coverage, please contact Andy Martin, CLU, ChFC or one of the other professionals at Providence Benefits, LLC in Birmingham, AL and let us educate you about “SUSTAINABLE GAP” and see how we can collaborate to stop the insanity. Please contact us online at You can email Andy Martin at or you can call us at 205-848-8100. We look forward to educating you about “SUSTAINBLE GAP”.

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