AHIP Practice Exam 2025 – Complete Test Preparation

The term 'embedded deductible' specifically refers to a deductible structure within a family health insurance plan where each individual has their own deductible that contributes to the overall family deductible. This means that if one member of a family meets their individual deductible, the insurance begins to pay for covered services for that member, even if the family deductible has not yet been met by the collective amounts of all family members.

This structure is beneficial in situations where one family member may require more medical care than others, allowing them to access benefits sooner than if they were reliant on the overall family deductible alone. The other options, while related to deductibles, do not accurately capture the concept of an embedded deductible. The option that mentions a one-time deductible for all family members incorrectly suggests that everyone in the family must meet the same threshold before benefits kick in. A separate deductible for preventive services is not representative of embedded deductibles, as those typically apply to other types of care. Finally, the notion of a deductible system that resets annually for every family member doesn't resonate with the embedded deductible model, where individual and family deductibles function simultaneously rather than independently each year.

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