What is a non-embedded deductible and how does it work?

With a non-embedded deductible, all family member’s out-of-pocket expenses contribute towards meeting the deductible. Once the deductible is met, the insurance starts to pay for their share of covered medical services.

Embedded vs. non-embedded deductible

Embedded deductibles require every family member to meet an individual deductible and a family deductible. When one family member meets their individual deductible, the insurance will start covering their portion of covered services, excluding copays, for that specific family member. The rest of the family members will still need to meet their individual deductibles before the insurance plan begins to cover their portion. 

For an embedded deductible, the family deductible is typically higher. Out-of-pocket individual medical expenses that count towards an individual deductible also count towards the family deductible. Once the family deductible is met, all family members will have medical expenses paid per the health insurance plan coverage. 

The biggest difference between an embedded and non-embedded deductible is that a non-embedded deductible only has a family deductible that plan members need to meet.