Home: FAQs: What is the difference between embedded and non-embedded deductibles?

What is the difference between embedded and non-embedded deductibles? Should I choose an embedded or non-embedded deductible plan for my employees? Embedded (traditional): An embedded deductible is an individual deductible level within a family contract. For example, if there is a family deductible of $3,000 with an individual embedded deductible of $1,500 means that when any one individual family member reaches $1,500 in expenses, their benefit plan coverage takes effect. Federal HSA regulations do not allow individual embedded deductibles within a family contract to be less than the family minimum ($2,200 in 2008). Non-embedded (contract): A non-embedded deductible requires that the entire family deductible of $3,000 be met before benefit plan coverage takes effect – by any one or combination of family members. For large group plans, the Family deductible is exactly twice the Individual deductible. Most account based plans have non-embedded deductibles to match the benefit design of the account which can be used by one or any combination of family members. The account is not segmented by contract member, so the plan does not need to be segmented with individual embedded deductibles either.