Gap plans, used to cover out-of-pocket expenses like high deductibles, are becoming increasingly popular among consumers and businesses.
The rising price of insurance is driving the trend, explains insurance broker Ryan Hillenbrand, president of the Missouri Association of Health Underwriters.
"People see the prices of individual insurance and they say, 'Boy, a $6,000 deductible seems really high, I don't want something that gives me that much risk,'" Hillenbrand says. "That's why [the gap insurance] market is heating up a little bit more."
Gap insurance is in a category of insurance known as "limited benefit." No matter how bad a person's situation, the plan will only pay out a certain amount of money. "Mini-med" policies, now illegal under the Affordable Care Act, are another example of a limited benefit plan
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