Young Adults Insured Under Parent Plans

Understanding Embedded and Nonembedded Deductibles

One of the most important health care concepts to understand is how your deductible works. As a reminder a deductible is the amount you pay for covered health services before your health plan begins to pay. For family coverage, there are two basic types of deductibles:

  • Embedded deductible. This has two parts – the individual deductible for each plan member and the family deductible for. When a member meets their individual deductible, then their health plan will begin to cover that person. The rest of the family still has to pay to meet their individual deductibles.
  • Nonembedded (aggregate) deductible. This only has a family deductible, and each family member contributes towards the same deductible. Once met, all family members are covered.

Selecting the correct plan for you requires knowledge of the available options and knowledge of your family’s needs. While everyone has different deciding factors, many families with high or numerous medical costs select Embedded deductible plans. Families with relatively healthy members typically chose nonembedded deductible plans (if available) to try and save money on the premium.


If you have questions about your selected health plan, contact the dedicated ESR team.