WBS
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Allstate has a new gap plan that they claim to be a true "Gap Plan"
Gap Policies
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Could you share Allstate Gap plan info? Is it available in Florida and is it only for group or individuals?
Thanks
Asher
sammace
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The Allstate plan is underwritten by Fidelity Security Life. We offer the same plan, the one we offer is not available in FL. It is only available for group coverage, and they have to have a major medical policy to be eligible. Anything under 25 lives requires extra documentation provided to FSL. The nice thing on this policy is the employer can choose to pay for a portion of the Gap, and then you can offer an employee buy up option, but again it is not HSA compatible.
I'm looking for an HSA compliant gap policy that can be sold to individuals. Does anyone sell one? Colonial has an HSA compliant gap plan, but it is only available to groups.
Another question would be if anyone knows of a company who sells an individual HSA policy with a good level payout gap policy sold as part of the plan. Golden Rules Gap plan that accompanies their HSA's is pretty weak. It's a decreasing payout plan that offers very little coverage after a year. Anything out there????
Another question would be if anyone knows of a company who sells an individual HSA policy with a good level payout gap policy sold as part of the plan. Golden Rules Gap plan that accompanies their HSA's is pretty weak. It's a decreasing payout plan that offers very little coverage after a year. Anything out there????
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I would agree.
You would have to run this approach with a co pay plan that has a $5,000 deductible.
It has to be sold as cost shifting without cost shifting onto the employee.
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People are incredibly stupid and would prefer to pay for a gap policy rather than put money into an account, even if it means paying more.
I can't even tell you how many times I've used the phrase "You can spend more on the policy, or put the money into your account and get an even greater return. It's your choice - which do you prefer?" only to have them choose the policy.
You can't fix stupid.
I can't even tell you how many times I've used the phrase "You can spend more on the policy, or put the money into your account and get an even greater return. It's your choice - which do you prefer?" only to have them choose the policy.
You can't fix stupid.
Some of the ones I use (and they usually work) are:
You can pay more (for insurance) but that does not mean you get more.
At the end of the year you have a stack of cancelled checks. You can have a stack of $400 checks or a stack of $700 checks. The insurance company doesn't care. Either way, don't expect a refund, a thank you note or flowers.
You don't have copays for tires, brakes and oil changes. Why do you need one for health insurance?
(That last one usually get's them).
You can pay more (for insurance) but that does not mean you get more.
At the end of the year you have a stack of cancelled checks. You can have a stack of $400 checks or a stack of $700 checks. The insurance company doesn't care. Either way, don't expect a refund, a thank you note or flowers.
You don't have copays for tires, brakes and oil changes. Why do you need one for health insurance?
(That last one usually get's them).
A gap plan makes sense in the early years of holding an HSA to prevent a person from cleaning out all their HSA dollars if they have to go to the hospital. A lump sum gap with a payout close to the deductible makes the most sense; one that pays a small amount per day probably won't pay for enough to make it worthwhile. However, once they get past their deductible amount in the HSA it doesn't make sense. Getting to that point may take a while if the person isn't putting a lot of money in it. HSA's are going to be more popular as premium's start skyrocketing from health care reform. Finding a way to Protect the HSA balance is also going to be a priority.
Are there such plans? The gap plans I have seen are mostly HIP's. There are accident plans that pay a lump sum.
With an HSA people will either save or they won't. If they don't save, that isn't my responsibility.
If you sell someone on a HDHP/HSA then turn around and sell them something to "fill the gap" it seems counterintuitive. Seems like you are talking them out of buying the whole HDHP/HSA concept.
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