How does a family deductible differ from individual deductibles?

• A. Family deductible is a single amount that applies to all covered family members; individual deductibles are separate amounts for each person.
• B. Individual deductibles combine into one.
• C. There is no family deductible.
• D. Family deductible is shared after one member pays all.

Answer: (A)

In this concept, think of two ways a deductible can apply in a family health plan. A family deductible is a single total amount that the entire family must spend on covered services before the plan begins paying for everyone in the family. Individual deductibles, on the other hand, are separate amounts assigned to each person; each member must meet their own deductible before their own services are covered (subject to the plan’s rules). Therefore, the family deductible being a single amount that applies to all covered family members, while individual deductibles are separate per person, best describes the difference.