How can “embedded” deductibles affect the ability to contribute to an HSA?
A. An “embedded” deductible is a lower individual deductible which operates in conjunction with family coverage. For example, if an arrangement appears to be a high deductible health plan because it has a $2,000 family deductible but contains an embedded feature through which an individual who incurs $1,500 in deductible expenses is then covered without reference to the deductible, then the plan will not be considered a high deductible health plan, and participants will not be eligible to contribute to an HSA.
