In today’s day and age, every family needs a comprehensive health insurance plan. Life can, and often will, throw a curveball your way. When that happens, you’ll want a health insurance policy to cover the average doctor’s office visit, surgery, or medication from the local pharmacy. These benefits are not without their cost, though. That cost comes in the form of a deductible. A family health insurance deductible is designed so large families can receive insurance without breaking the bank. You pay a specific amount, then the insurance company covers the rest.
How Family Deductibles Work
Many family health insurance policies provide both individual and family deductibles. Every time a member of the family pays his or her individual deductible, the same amount is credited towards the whole family deductible.
For a family deductible, coverage starts for every individual when their deductible is met. Once the family deductible has been met, the family is covered, whether individual deductibles are met or not. However, say only one individual in the family reaches their deductible. That individual will receive health insurance benefits, while the rest of the family must still meet their deductible.
This system is known as an embedded deductible.
Many health insurance policies offer a family deductible somewhere between two to four times the individual deductible amount. So, for example, if you have five members in the family, each with an individual deductible of $1,000, the family deductible may be just $2,000, which is twice the amount.
What Isn’t Included
Anything not covered by your health insurance will not count towards your deductible when you pay. For instance, cosmetic surgeries are typically not covered by health insurance. If you pay for facial rejuvenation, for example, the amount you pay is out of pocket. It will not go towards the insurance deductible for the whole family.