Gap-Health-Insurance-Supplemental-Health-Insurance-Badge

Gap health insurance and supplemental health insurance plans help reduce your out-of-pocket medical expenses. These plans cover services major medical plans don’t cover or don’t pay for in full. For example, if your health insurance company pays for 70% of all covered services, that means you need to pay the other 30%. Gap or supplemental health insurance can pay for some or all of the remaining balance.

The best gap or supplemental health insurance plan offers the coverage you need at a price that’s affordable for your budget. Keep reading to learn more about the best affordable gap and health insurance options.

What You Should Know About Gap Health Insurance Plans

  • Supplements your health coverage: Gap health insurance plans add to your existing health coverage and can pay for some out-of-pocket costs.
  • Direct payments: Your gap health insurance may make payments directly to you instead of medical providers.
  • Accident and death coverage: Some gap health policies cover medical expenses for covered accidents or accidental death and dismemberment.
Health Insurance Company Financial Strength Rating Customer Satisfaction Rating Value Rating Coverage Rating Overall Rating
Aetna: Best rated 5 5 5 5 5
AIG: Best accident insurance 4.5 3 4 5 4.1
Golden Rule: Best for critical illness 4.5 5 5 5 4.9
IHC Health Group: Best for hospital indemnity 4.3 3 4 5 4
National General: Best for seniors 5 5 5 5 5
Transamerica: Best for nationwide coverage 4.3 4.3 4.6 5 4.5

How We Rate Gap Insurance Companies

  • Financial strength: The financial strength rating is based on the insurance company’s A.M. Best financial strength rating. A.M. Best is a credit rating agency specializing in the insurance industry, which rates an insurer’s ability to meet ongoing obligations.
  • Customer satisfaction: The customer satisfaction rating takes into account Kaiser Permanente’s Better Business Bureau (BBB), National Committee for Quality Assurance (NCQA), and Consumer Affairs ratings. These ratings are calculated using customer complaints and satisfaction ratings.
  • Value: The value rating calculates an insurer’s overall value based on monthly premium, annual deductible, office visit cost, emergency room (ER) visit cost, and annual maximum out-of-pocket cost.
  • Coverage: The coverage rating considers the insurer’s availability of coverages, plan types, and network size.

What Is the Best Affordable Gap Health Insurance and Supplemental Health Insurance?

  • Employer plans: Your employer may offer gap insurance as a benefit. You likely won’t pay the entire premium, though your plan options will be limited to what’s available for your group. Contact your benefits administrator to sign up for group supplemental health insurance.
  • Stand-alone gap insurance: You can purchase gap insurance independent of health or other insurance policies directly from insurance companies or through an agent.
  • Medicare: Medicare doesn’t cover every possible health expense. For example, even if you have free Part A, you still have to pay a Part B premium, along with annual deductibles and coinsurance. Medicare Supplement Insurance covers many out-of-pocket expenses associated with Medicare coverage.

Aetna Gap Health Insurance: Best rated

Aetna Medicare Insurance Logo

Company Overview
Company founded 1853
Coverage area All 50 states
A.M. Best rating A+
BBB rating A+
NCQA accreditation Yes
NCQA rating 5 to 2.5
Plans available Accident
Critical illness
Hospital indemnity
Preexisting condition coverage No
Prescription coverage Yes
Provider network Large

When you sign up for supplemental coverage with Aetna, you can expect to receive cash payments to help defray the cost of medical services. Aetna offers supplemental insurance to members who qualify for employer-sponsored medical benefits, or you can purchase a stand-alone policy. Individual policies may be subject to underwriting and preexisting condition look-backs.

Is Aetna a Good Gap Insurance Provider?

What we like about Aetna gap insurance plans: The drawbacks of Aetna supplemental health insurance plans:
  • Low-cost coverage for individuals and families
  • Direct cash payments to defray the cost of medical care
  • You can also use payments for utility bills and other expenses
  • Limited coverage under some plans

What Do Aetna Gap Health Insurance Plans Cover?

Aetna offers the following gap health insurance plans:

  • Accident plans
  • Critical illness plans
  • Hospital indemnity plans

How Is Aetna Rated?

Trusted ratings and reviews can help you understand how an insurer’s plans stack up against the competition. See how we rated Aetna.

Overall rating: 5
Financial strength rating:
5
Customer satisfaction rating:
5
Value rating:
5
Coverage rating:
5

AIG Gap Health Insurance: Best accident insurance

AIG-Gap-Health-Insurance

Company Overview
Company founded 1919
Coverage area All 50 states
A.M. Best rating A
BBB rating F
NCQA accreditation No
NCQA rating None
Plans available Accident insurance
Accident and sickness insurance
Accidental death or dismemberment insurance
Preexisting condition coverage No
Prescription coverage No
Provider network Large

Founded in 1919, AIG offers insurance plans in all 50 states, including gap or supplemental insurance. AIG’s gap insurance can reduce your out-of-pocket medical expenses or pay your living expenses if you’re injured or seriously ill. When you sign up for supplemental insurance through AIG, expect to receive cash benefits promptly with complete control over how you spend the money. But some plans only provide coverage if you develop certain covered health conditions.

Is AIG a Good Gap Health Insurance Provider?

What we like about AIG gap health insurance plans: The drawbacks of AIG gap health insurance plans:
  • Three plan types are available
  • Prompt cash payments after a covered event
  • You can use it for any household expenses
  • Limited coverage under the Accident Death Plus plan
  • No 24/7 customer service is available

What Do AIG Gap Health Insurance Plans Cover?

AIG offers three types of gap health insurance/supplemental health insurance:

  • Accident insurance
  • Accident and sickness insurance
  • Accident Death Plus insurance for accidental death, dismemberment, coma, or paralysis

How Is AIG Rated?

Trusted ratings and reviews can help you understand how an insurer’s plans stack up against the competition. See how we rated AIG.

Overall rating: 4.1
Financial strength rating:
4.5
Customer satisfaction rating:
3
Value rating:
4
Coverage rating:
5

Golden Rule Gap Health Insurance: Best for Critical Illness

Golden-Rule-Gap-Health-Insurance

Company Overview
Company founded 1940
Coverage area All 50 states
A.M. Best rating A
BBB rating A+
NCQA accreditation No
NCQA rating N/A
Plans available Accidental injury
Critical illness insurance
Hospital and doctor
Hospital indemnity
Preexisting condition coverage No
Prescription coverage Yes
Provider network Large

Golden Rule has been in business for more than 80 years, giving members access to an extensive network of providers in all 50 states. The company offers several supplemental insurance plans, including accidental injury, critical illness, hospital and doctor, and hospital indemnity plans.

Is Golden Rule a Good Gap Health Insurance Provider?

What we like about Golden Rule gap health insurance plans: The drawbacks of Golden Rule gap health insurance plans:
  • Lifetime benefit maximum of up to $50,000
  • Cash payments for rent or mortgage, utilities, and more
  • Lump-sum payment after diagnosis
  • Low lifetime coverage limits for some plans
  • Limited benefit for a life-threatening cancer diagnosis within 30 to 90 days of the plan’s effective date
  • Pays only 25% of maximum benefit for noninvasive cancer and coronary artery bypass graft

What Do Golden Rule Gap Health Insurance Plans Cover?

Golden Rule offers the following gap health insurance plans:

  • Accidental injury insurance
  • Critical illness insurance ($10,000 to $50,000 maximum)
  • Hospital and doctor insurance
  • Hospital indemnity insurance

How Is Golden Rule Rated?

Trusted ratings and reviews can help you understand how an insurer’s plans stack up against the competition. See how we rated Golden Rule.

Overall rating: 4.9
Financial strength rating:
4.5
Customer satisfaction rating:
5
Value rating:
5
Coverage rating:
5

IHC Health Group Gap Health Insurance: Best for hospital indemnity

IHC-Health-Group-Gap-Health-Insurance

Company Overview
Company founded 1975
Coverage area All 50 states
A.M. Best rating A-
BBB rating F
NCQA accreditation No
NCQA rating N/A
Plans available Gap
Hospital indemnity
Preexisting condition coverage No
Prescription coverage No
Provider network Large

Established in 1975, IHC Health Group offers group health insurance, supplemental insurance, and other types of coverage. The company offers at least one plan in all 50 states. IHC Health Group’s gap plan pays your health insurance deductible if you’re hospitalized, injured, or critically ill. You can expect to receive direct payments with no restrictions on how you spend the money.

Is IHC Health Group a Good Gap Health Insurance Provider?

What we like about IHC Health Group gap health insurance plans: The drawbacks of IHC Health Group gap health insurance:
  • No restrictions on how payments are spent
  • Coverage for organ transplants, heart attacks, and more
  • Room and board, surgical fees, and other hospitalized costs covered under the hospital indemnity plan
  • No coverage for experimental treatments
  • It doesn’t cover injuries sustained while under the influence or while participating in dangerous activities

What Do IHC Health Group Gap Health Insurance Plans Cover?

IHC Health Group has two types of gap health insurance available:

  • Gap plans
  • Hospital indemnity plans

How Is IHC Health Group Rated?

Trusted ratings and reviews can help you understand how an insurer’s plans stack up against the competition. See how we rated IHC Health Group.

Overall rating: 4
Financial strength rating:
4.3
Customer satisfaction rating:
3
Value rating:
4
Coverage rating:
5

National General Gap Health Insurance: Best for seniors

National-General-Gap-Health-Insurance

Company Overview
Company founded 1920
Coverage area All 50 states
A.M. Best rating A+
BBB rating A+
NCQA accreditation No
NCQA rating None
Plans available Supplemental insurance
Medicare Supplement Insurance
Preexisting condition coverage No
Prescription coverage No
Provider network Large

Established in 1920, National General offers short-term and fixed-benefit medical plans to eligible Medicare enrollees. The company offers at least one type of coverage in all 50 states. But one thing to be aware of is the coverage restrictions that come with some plans. Learn more about National General’s supplemental insurance options before purchasing a plan.

Is National General a Good Gap Health Insurance Provider?

What we like about National General gap health insurance plans: The drawbacks of National General gap health insurance plans:
  • Multiple coverage types are available
  • Direct cash payments under most plans
  • Benefit levels as low as $2,500 for some plans
  • Limited benefits under cancer and heart or stroke plans

What Do National General Gap Health Insurance Cover?

National General offers these gap health insurance options:

  • Critical illness plans
  • Cancer, heart, and stroke plans
  • Accidental death and dismemberment plans
  • Medicare Supplement Insurance plans

How Is National General Rated?

Trusted ratings and reviews can help you understand how an insurer’s plans stack up against the competition. See how we rated National General.

Overall rating: 5
Financial strength rating:
5
Customer satisfaction rating:
5
Value rating:
5
Coverage rating:
5

Transamerica Gap Health Insurance: Best for nationwide coverage

Transamerica-Gap-Health-Insurance

Company Overview
Company founded 1928
Coverage area All 50 states
A.M. Best rating A-
BBB rating A-
NCQA accreditation No
NCQA rating N/A
Plans available Supplemental medical expense insurance
Cancer insurance
Accident insurance
Critical illness insurance
Hospital indemnity insurance
Preexisting condition coverage No
Prescription coverage No
Provider network Large

Transamerica was established in 1928 and offers insurance in all 50 states. Plan availability varies based on your location. You may have access to supplemental health insurance or disability coverage, depending on where you live. When you have supplemental coverage from Transamerica, you get direct cash payments. You can only get Transamerica supplemental health insurance if it’s offered by your employer as the company doesn’t sell supplemental plans to consumers. Find out more about Transamerica and its supplemental coverage options.

Is Transamerica a Good Gap Health Insurance Provider?

What we like about Transamerica gap health insurance plans: The drawbacks of Transamerica gap health insurance plans:
  • Accident, critical illness, and hospital indemnity insurance available
  • Direct cash benefits to pay household expenses
  • Only available through your employer
  • Coverage is not available for all medical conditions

What Do Transamerica Gap Health Insurance Plans Cover?

The following supplemental insurance coverages are available via Transamerica:

  • Supplemental medical expense insurance
  • Cancer insurance
  • Accident insurance
  • Critical illness insurance
  • Hospital indemnity insurance

How Is Transamerica Rated?

Trusted ratings and reviews can help you understand how an insurer’s plans stack up against the competition. See how we rated Transamerica.

Overall rating: 4.5
Financial strength rating:
4.3
Customer satisfaction rating:
4.3
Value rating:
4.6
Coverage rating:
5

How to Compare Gap Health Insurance and Supplemental Health Insurance Companies

When you’re ready to shop for coverage, it pays to compare gap health insurance and supplemental insurance plans. Typically, you need to weigh the cost of coverage against the benefits you’ll receive if a covered event occurs. To find the right plan for your company, follow these tips:

  • Find plans available in your area: Not every insurer offers coverage in every state, so be sure to limit your search to your state or even your ZIP code.
  • Research the network: You don’t want to miss out on a cash payment because you went to an out-of-network hospital. When comparing plans, look for those that include your preferred hospitals and providers.
  • Compare monthly premiums: It’s crucial to find a gap or supplemental plan you can afford. Review each plan carefully to determine how much you can expect to pay each month.
  • Research supplemental coverage: Insurers offer several gap and supplemental plans, including critical illness, cancer protection, and accidental death and dismemberment. Check the details of each plan to find out which type of coverage is offered.
  • Check insurer ratings: Before committing to a plan, check the insurance company’s reviews and overall ratings to see what customers have to say.
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Insurance and health care consultant

Tammy Burns is an experienced health insurance advisor. She earned her nursing degree in 1990 from Jacksonville State University, obtained her insurance billing and coding certification in 1995, and holds a health and life insurance license in Alabama, Georgia, Iowa, Mississippi, and Tennessee. Burns is Affordable Care Act (ACA)-certified for health insurance and other ancillary, life, and annuity products. She maintains an active nursing license and practices private-duty nursing.

Burns’ background as a nurse, insurance biller and coder, and insurance consultant includes infectious disease, oncology, gynecology, phlebotomy, post operative, family medicine, geriatrics, home health, hospice, human resources, management, billing, coding, claims, fixed annuities, group and individual health and life products, and Medicare. She’s always been driven by a desire to help people, spending more than 25 years as a practicing nurse in hospitals, private doctors’ offices, home health, and hospice. As a nurse, Burns supported patients filing insurance claims with Medicare, Medicaid, and private insurance companies as well as responding to billing questions from confused patients.

Seeing firsthand how unsuspecting patients are frequently confused by an overly complex system they don’t understand led Burns to become an insurance agent and health care consultant, now helping people understand the medical system. Since becoming an insurance agent in 2013, she has worked with some of the largest and most reputable insurance carriers and agencies in the nation, and she has built a large and loyal clientele by way of her commitment to transparency and personalized service.

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