High Deductible Health Plan? Gap Insurance and Other Ways to Cover the Deductible

Sometimes a lower-deductible plan is available for a premium difference that's worth it depending on how much care you expect to use -- this is worth a real comparison, not an assumption either way, especially during an enrollment window.

Hospital indemnity, accident, and critical illness coverage pay a fixed cash benefit for specific covered events -- they're built to help with out-of-pocket costs like a high deductible, not to replace your major medical coverage.

• Hospital indemnity: cash for a covered hospital stay or ER visit
• Accident insurance: cash for a covered injury
• Critical illness insurance: a lump sum if you're diagnosed with a covered serious illness

"Gap insurance" or "medical gap" plans are usually these same supplemental products, marketed for the space between what your health plan pays and your deductible. They pay a set cash benefit when a covered event happens, which you can put toward the deductible. They don't pay your deductible directly for every bill, so it's worth reading what events each plan covers.

A high deductible plan often has a lower monthly premium, and an HSA-eligible plan lets you save pre-tax money in a Health Savings Account for medical costs. It tends to fit people who expect little care and can cover the deductible from savings; people expecting surgery, a baby or ongoing treatment often do better comparing lower-deductible options.

A hospital stay, an injury, and a serious diagnosis are different risks with different products built for them -- starting from the specific worry, rather than the product name, is the more useful way in.