How is an aggregate deductible different from an embedded deductible?
Many HSA plans have what is referred to as an aggregate deductible, which means there is one large family deductible that must be met before anyone in the family is covered. (I.E. If a family deductible is $5,000, there must be $5,000 in claims paid out of the client’s pocket before any family member is covered.) Essentially for employees covering dependents, the entire family deductible must be satisfied by one family member or the combined (aggregate) of the entire family before any one family member can receive benefits. With an embedded deductible each covered family member only needs to satisfy his individual deductible, not the entire family deductible, prior to receiving plan benefits. This is only possible if the embedded deductible is equal to at least the required HSA family deductible for that years HSA Limits. An embedded deductible has a family deductible however, embedded within it is an individual deductible. Embedded deductibles are what people are generally used to whe
