Deductible
The amount an employee must pay out-of-pocket for covered services before the health plan starts sharing costs.
The deductible is the dollar threshold an employee has to spend on covered care in a plan year before the insurance plan starts contributing toward costs (outside of services like preventive care, which are usually covered pre-deductible under most plans).
Individual vs. family deductibles: family plans typically carry both an individual deductible (what any one family member needs to hit) and a higher family deductible (the total the family unit needs to hit before the plan starts sharing costs for everyone).
Why it matters for plan design: deductible level is one of the biggest levers in balancing premium cost against employee out-of-pocket exposure — a higher deductible plan almost always means a lower monthly premium, and vice versa. Comparing deductible levels side-by-side with premium differences is one of the most common things employers ask a broker to help model at renewal.
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Have questions about how this applies to your renewal?
Talk to a group health insurance broker who specializes in your situation.