When it comes to family health insurance plans, there are two kinds of deductibles – insurance plans, aggregate deductibles, and embedded deductibles.

The kind of deductible your plan uses will determine how much money you have to pay out before the plan starts paying their part of health expenses. Understanding the difference, and what that will mean for your family, is an important factor when it comes to choosing the right family health insurance option for your loved ones.

Plan to Plan

If you’re going to purchase a high-deductible family health insurance plan (HDHP), then odds are it’s going to end up using an aggregate deductible for you and your loved ones. With that kind of deductible, health costs paid by any family member go toward the entire family deductible. If several people have health expenses throughout the year, the total might be combined. If one person has severe expenses, then they might end up covering the cost for the whole family.

For 2019, the individual out-of-pocket maximum deductible is $7,900. That means that, even in the aggregate deductible plan, no individual family member can be held responsible for paying more than that for their needs. The total deductible for a particular family health insurance plan may be higher than that, but if an individual’s bills hit more than the above maximum then insurance has to help. (Note: This only counts if all the expenses were for the care of a single person. If it’s a combination of two people’s medical bills, the out of pocket maximum would need to be met for each of them.)

Embedded Deductibles?

Other family health insurance plans work via embedded deductibles. There, each family member will have their own individual deductible as well as a larger family deductible. Unlike the above scenario, the individual deductible will likely be far lower than the established maximum (though the specifics will depend on the plan).

In this scenario, each individual person’s deductible applies to only them. If someone reaches their deductible, the family health insurance plan will start paying a portion of their health expenses. The rest of the family, however, will have to wait until either they’ve paid their individual premiums or the family deductible has been met. Once an individual has met their deductible, their continued expenses no longer add to paying off the larger family health insurance deductible.

• Discover more about your family health insurance options by contacting Miller Insurance Management today!~
• Learn more about family health insurance deductibles~
• When it comes to family health insurance plans, there are two kinds of deductibles – aggregate deductibles and embedded deductibles.

The kind of deductible your plan uses will determine how much money you have to pay out before the plan starts paying their part of health expenses. Understanding the difference, and what that will mean for your family, is an important factor when it comes to choosing the right family health insurance option for your loved ones.

High-Deductible?

If you’re going to purchase a high-deductible family health insurance plan (HDHP), then odds are it’s going to end up using an aggregate deductible for you and your loved ones. With that kind of deductible, health costs paid by any family member go toward the entire family deductible. If several people have health expenses throughout the year, the total might be combined. If one person has severe expenses, then they might end up covering the cost for the whole family.

For 2019, the individual out-of-pocket maximum deductible is $7,900. That means that, even in the aggregate deductible plan, no individual family member can be held responsible for paying more than that for their needs. The total deductible for a particular family health insurance plan may be higher than that, but if an individual’s bills hit more than the above maximum then insurance has to help. (Note: This only counts if all the expenses were for the care of a single person. If it’s a combination of two people’s medical bills, the out of pocket maximum would need to be met for each of them.)

Other family health insurance plans work via embedded deductibles. There, each family member will have their own individual deductible as well as a larger family deductible. Unlike the above scenario, the individual deductible will likely be far lower than the established maximum (though the specifics will depend on the plan).

Discover more

In this scenario, each individual person’s deductible applies to only them. If someone reaches their deductible, the family health insurance plan will start paying a portion of their health expenses. The rest of the family, however, will have to wait until either they’ve paid their individual premiums or the family deductible has been met. Once an individual has met their deductible, their continued expenses no longer add to paying off the larger family health insurance deductible.

Discover more about your family health insurance options by contacting Miller Insurance Management today!