In the state of Alabama GAP Insurance has a bad reputation because of the many rate increases the plans have had historically. Some companies have been moved to different insurance companies or different Third-Party Administrators 5 or 6 times in the past 6-7 years. Many well-intended brokers have blamed the carriers or the TPA’s for the rate increases and worked hard to find a carrier that promises they will not give a rate increase. What we are continuing to see is carriers over promise and then give a rate increase in a year, or two at most.
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.