Aggregate vs Embedded Deductible
What’s the difference?
If you’re considering enrolling yourself and your covered dependents in one of the HDHP medical plans, it’s important that you understand how the family deductible works under each of the options. HDHP Plan 1 has an “aggregate” family deductible, while HDHP Plan 2 has an “embedded” plan deductible. Here’s what those terms mean:
Aggregate Family Deductible:
The full family deductible must be met before the plan begins to pay a portion of expenses for any covered family members.
Embedded Plan Deductible:
If one covered family member has enough expenses in a calendar year to meet the individual deductible, the plan will begin paying a portion of that family member’s expenses for the remainder of the year. You do not have to meet the full family deductible before the plan begins to pay.
What is a Deductible?
The amount you need to pay each year before the plan starts paying benefits. For example, if your deductible is $2,000, your plan won’t pay anything until you’ve paid $2,000 for covered healthcare services, unless copays apply.
Click here to see an example scenario of how each plan’s deductible works.