Growing deductibles, greater co-insurance shares, larger co-pays. The result? Higher out-of-pocket medical costs for employees. To help employers lessen the impact, more brokers are turning to a tried and true solution—gap coverage.

David Fesmire had a problem. He had just received the renewal offer on a client’s major medical policy. It wasn’t good news—a 34 percent rate bump. He knew his client and his client’s employees couldn’t afford such an increase so David, owner of Coverage Solutions Group in Nashville, Tenn., reviewed his options.

His client said he didn’t want to do what 53 percent of employers expect to do in 2012—increase the percentage that employees contribute to their plan’s premium.¹ Increasing the annual deductible was another potential cost-saving option, but it was already at $2,000. Increasing it even more could create a financial hardship for participants if they required sudden, unexpected medical care.