Should You Stack Your Deductible?

Vermonters know that some things are just better when they are stacked. Firewood dries faster in stacks, keeping us warmer in the winter. A stack of pancakes is more enticing, as maple syrup poured on top slowly trickles down the pile. But when it comes to selecting a health plan, the question of whether the deductible should be stacked is not as easy to decide.

Stacked vs. Aggregate

On our plan comparison chart, you’ll see a column for the deductible type. The two types of deductibles we offer are “aggregate” or “stacked.” In this article, we’ll explain what those are and how they work. We’ll also give you some information that can help you choose which one is best for you and your family.

• Aggregate deductible plans require that the full two-person or family deductible be satisfied before benefits are paid for anyone on the plan. Medical expenses for everyone on the plan are combined or aggregated to determine if the plan’s deductible has been met. This applies to the out-of-pocket maximum as well.
• Stacked deductible plans pay benefits for an individual once the individual deductible is satisfied, even on a two-person or family plan. With this type of plan, each person has their own deductible and those are stacked to determine if the two-person or family deductible has been met. This applies to the out-of-pocket maximum as well.

Please note that the different deductible types are only applicable when two or more persons are on a plan. When only one person is applying for coverage, the deductible types don’t matter.

Here are two examples of how the different deductibles work:

The Smith family has chosen our Vermont Preferred Silver plan, which has an aggregate deductible of $6,500. That means the Smiths will have to satisfy the $6,500 family deductible before the health plan starts paying for services like specialist visits and emergency room care for any family member.

The Jones family selected our Standard Silver plan, which has a stacked individual deductible of $4,000 and a family deductible of $8,000. Fred Jones only has to satisfy the individual $4,000 deductible before the health plan will start paying for his emergency room care and outpatient visits. With a stacked deductible type, Fred starts receiving benefits sooner than he would if he had an aggregate deductible. Once the $8,000 family deductible is met, then the other members of the Jones family will start receiving benefits.

Deductible Considerations

If benefits can start sooner with a stacked deductible, why would someone pick an aggregate deductible instead? You’ll notice that in our examples, the Jones household has an overall deductible of $8,000 with their stacked deductible plan, while the Smiths only have a $6,500 deductible with their aggregate deductible plan. Even though they are both silver-level plans, the aggregate deductible is less.

It’s not always the case, but several of our plans with aggregate type deductibles have lower overall deductible costs than their stacked counterparts.

If you are fairly certain you’ll meet the plan’s two-person or family deductible within the calendar year, you may find that an aggregate deductible type is attractive as it could save you some money.

On the other hand, if you think that one member of your household will have enough medical expenses to satisfy the individual deductible, but you are not certain the two-person or family deductible will be met in the calendar year, a stacked deductible type may be more to your liking.

For example, if one family member is planning to have a surgery or another expensive procedure during the year, but other family members are healthy and not anticipating using many medical services, the stacked deductible type may be better. Benefits for the person who reaches the individual deductible would start being paid sooner than with an aggregate deductible.

The next time you are choosing a health plan, be sure to check out the deductible type and spend a few moments considering which one is most advantageous for you and your family. If you would like assistance, please give our Consumer and Business Support Services team a call at 1-800-255-4550 or email consumersupport@bcbsvt.com. You can also use the plan comparison tool on our website to help you select a plan.