What is the Purpose of a Coverage Gap Discount Program?

The purpose of a Coverage Gap Discount Program is to incentivize insurers to enter the marketplaces and provide coverage for low-income Americans. The Coverage Gap Discount Program provides discounts on premiums for those who have insurance through a marketplace and have gaps in their coverage.

How does a Coverage Gap Discount Program work?

A coverage gap discount program (CGDP) is a type of health insurance plan that helps individuals and families who have lapsed or lost coverage due to a change in their employment status, income, or residence. A CGDP can help people who have been uninsured for a certain period of time purchase health insurance coverage through an exchange. The program is designed to help people who are not eligible for other types of assistance such as Medicaid or Medicare.

There are two types of CGDPs: open enrollment and special enrollment. Open enrollment is the regular process by which individuals and families can enroll in CGDPs. Special enrollment occurs when an individual or family experiences a life-changing event such as a loss of employment, discharge from military service, or changes in income level.

CGDPs are important because they help to fill the coverage gap between what people are able to purchase on their own and what they may be eligible for through an exchange. In 2016, 68% of people who purchased health insurance through an exchange were eligible for financial assistance from a CGDP. This assistance can include tax credits and cost-sharing reductions (CSRs).

As the number of people who are uninsured continues to decline, CG

What are the Benefits of a Coverage Gap Discount Program?

A coverage gap discount program is a great way to get affordable health insurance for your employees. These programs allow businesses to offer their employees discounted rates on health insurance if they don’t have insurance through their job. This can help to reduce the cost of coverage for your employees, and it can also help to encourage them to get health insurance. There are a lot of benefits to a coverage gap discount program, and it can be a great way to improve employee morale.

How to Create a Coverage Gap Discount Program?

A Coverage Gap Discount Program is a great way to help your employees save money on their car insurance. By setting up a program, you can offer employees discounts on their premiums if they have certain types of coverage gaps on their policy. This can help to reduce the cost of insurance for your employees, and it can also improve your company’s image by showing that you care about your employees’ financial well-being.

To create a Coverage Gap Discount Program, you’ll first need to identify which types of coverage gaps your employees have. You can use the following list to Help determine which coverage gaps your employees may have:

No Collision Coverage

No Comprehensive Coverage

Less than $50,000 in Liability Insurance Coverage

If any of your employees falls into one of these coverage gaps, you should offer them a discount on their car insurance premiums. To do this, you’ll need to set up a program with your car insurance provider. Your provider will likely provide you with specific instructions on how to set up the program. Once the program is setup, you’ll need to notify your employees of the discount and ask them to bring proof of coverage each time they file their insurance claim.

Creating a Coverage Gap


A coverage gap discount program is a great way to help your business customers maintain their insurance policies and/or receive discounts on premiums. By providing your policyholders with discounted rates, you are helping them stay fully compliant with their insurance contracts while also benefitting financially yourself. If you’re interested in setting up a coverage gap discount program for your business, be sure to speak to an agent at one of our top 10 insurance companies today.