A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
A
Actuary: A mathematician working for a health insurance company
responsible for determining what premiums the company needs to charge based
in large part on claims paid verses amounts of premium generated. Their
job is to make sure a block of business is priced to be profitable.
Admitting Privileges: The right granted to a doctor to admit patients to a particular hospital.
Advocacy: Any activity done to help a person or group to get something the person or group needs or wants.
Agent: Licensed salespersons who represent one or more health insurance companies and presents their products to consumers.
Association: A group. Often, associations can offer individual health insurance plans specially designed for their members.
B
Benefit: Amount payable by the health insurance company to a
claimant, assignee, or beneficiary when the insured suffers a loss.
Brand-name drug: Prescription drugs marketed with a specific brand name by the company that manufactures it, usually the company which develops and patents it. When patents run out, generic versions of many popular drugs are marketed at lower cost by other companies. Check your insurance plan to see if coverage differs between name-brand and their generic twins.
Broker: Licensed health insurance salesperson who obtains quotes
and plan from multiple sources information for clients.
CCapitation: Capitation represents a set dollar limit that you or your employer pay to a health maintenance organization
(HMO), regardless of how much you use
(or don't use) the services offered by the health maintenance providers.
(Providers is a term used for health professionals who provide care. Usually providers refer to doctors or hospitals. Sometimes the term also refers to nurse practitioners, chiropractors and other health professionals who offer specialized services.)
Carrier: The health insurance company or HMO offering a health
plan.
Case Management: Case management is a system embraced by employers
and health insurance companies to ensure that individuals receive appropriate,
reasonable health care services.
Certificate of Insurance: The printed description of the benefits and coverage provisions forming the contract between the carrier and the customer. Discloses what it covered, what is not, and dollar limits.
Claim: A request by an individual
(or his or her provider) to
an individual's health insurance company for the insurance company to pay for
services obtained from a health care professional.
COBRA: Federal legislation that lets you, if you work for an insured employer group of 20 or more employees, continue to purchase health insurance for up to 18 months if you lose your job or your coverage is otherwise terminated. For more information, visit the
Department of Labor.
Co-Insurance: Co-insurance refers to money that an individual
is required to pay for services, after a deductible has been paid. In some health
care plans, co-insurance is called "co-payment." Co-insurance is often specified
by a percentage. For example, the employee pays 20 percent toward the charges
for a service and the employer or health insurance company pays 80 percent.
Co-Payment: Co-payment is a predetermined
(flat) fee that an
individual pays for health care services, in addition to what the health insurance
covers. For example, some HMOs require a $10 "co-payment" for each office visit,
regardless of the type or level of services provided during the visit. Co-payments
are not usually specified by percentages.
Credit for Prior Coverage: This is something that may or may
not apply when you switch employers or health insurance plans. A
pre-existing condition waiting period met under while you were under an
employer's (qualifying)
coverage can be honored by your new plan, if any interruption in the
coverage between the two plans meets state guidelines.
DDeductible:
The amount an individual must pay for health care expenses before insurance
(or a self-insured company)
covers the costs. Often, insurance plans are based on yearly
deductible amounts.
Denial Of Claim: Refusal by a health insurance company to honor
a request by an individual (or his or her
provider) to pay for health care services
obtained from a health care professional.
Dependents:
Spouse and/or unmarried children (whether
natural, adopted or step) of an insured.
Dependent Worker: A worker in a family in which someone else has greater personal income.
E
Effective Date: The date your medical insurance is to actually
begin. You are not covered until the policies effective date.
Employee Assistance Programs (EAPs): Mental health counseling
services that are sometimes offered by health insurance companies or employers. Typically, individuals or employers do not have to directly pay for services
provided through an employee assistance program.
Exclusions: Medical services that are not covered by an individual's
health insurance policy.
Explanation of
Benefits: The health insurance company's written explanation to
a claim, showing what they paid and what the client must pay. Sometimes
accompanied by a benefits check.
GGeneric Drug: A "twin" to a "brand name drug" once the brand name company's patent has run out and other drug companies are allowed to sell a duplicate of the original. Generic drugs are cheaper, and most prescription and health plans reward clients for choosing generics.
Group Insurance: Coverage through an employer or other entity that covers all individuals in the group.
H
Health Care Decision Counseling: Services, sometimes provided
by health insurance companies or employers, that help individuals weigh the benefits,
risks and costs of medical tests and treatments. Unlike case management, health
care decision counseling is non-judgmental. The goal of health care decision
counseling is to help individuals make more informed choices about their health
and medical care needs, and to help them make decisions that are right for the
individual's unique set of circumstances.
Health Maintenance Organizations (HMOs): Health Maintenance
Organizations represent "pre-paid" or "capitated" health insurance plans in which
individuals or their employers pay a fixed monthly fee for services, instead
of a separate charge for each visit or service. The monthly fees remain the same,
regardless of types or levels of services provided. Services are provided by
physicians who are employed by, or under contract with, the HMO. HMOs vary in
design. Depending on the type of the HMO, services may be provided in a central
facility, or in a physician's own office. (as with IPA's)
HIPAA: A Federal law passed in 1996 that allows persons to qualify immediately for comparable health insurance coverage when they change their employment or relationships. It also creates the authority to mandate the use of standards for the electronic exchange of health care data; to specify what medical and administrative code sets should be used within those standards; to require the use of national identification systems for health care patients, providers, payers
(or plans), and employers
(or sponsors); and to specify the types of measures required to protect the security and privacy of personally identifiable health care. Full name is "The Health Insurance Portability and Accountability Act of 1996."
HSA: A tax-deductible,
interest-bearing account that permit unused funds to roll over from year
to year. They are similar to IRA's and must be combined with a
qualified HDHP.
IIndemnity Health Plan: Indemnity health insurance plans are also called "fee-for-service." These are the types of plans that primarily existed before the rise of HMOs, IPA's, and PPO's.
With indemnity plans, the individual pays a pre-determined percentage of the
cost of health care services, and the insurance company
(or self-insured employer)
pays the other percentage. For example, an individual might pay 20
percent for services and the insurance company pays 80 percent. The
fees for services are defined by the providers and vary from physician to
physician. Indemnity health plans offer individuals the freedom to
choose their health care professionals.
Independent Practice Associations: IPA's are similar to HMO's, except that individuals receive care in a physician's own office, rather than in an HMO facility.
Individual Health
Insurance: Health insurance coverage on an individual, not group basis. The premium is usually higher for individual health insurance than for a group policy, but you may not qualify for a group plan.
In-network: Providers or health care facilities which are part
of a health plan's network of providers with which it has negotiated a discount. Insured individuals usually pay less when using an in-network provider, because
those networks provide services at lower cost to the health insurance companies
with which they have contracts.
LLifetime Maximum Benefit
(or Maximum Lifetime Benefit):
The maximum amount a health plan will pay in benefits to an insured individual during that individual's lifetime.
Limitations: A limit on the amount of benefits paid out for a particular covered expense, as disclosed on the Certificate of Insurance.
Long-Term Care Policy: Insurance policies that cover specified services for a specified period of time.
Long-term care policies (and their prices)
vary significantly. Covered services often include nursing care, home
health care services, and custodial care.
Long-term Disability Insurance: Pays an insured a percentage of their monthly earnings if they become disabled.
LOS: LOS refers to the length of stay. It is a term used by insurance companies, case managers and/or employers to describe the amount of time an individual stays in a hospital or in-patient facility.
MManaged Care: A medical delivery system that attempts to manage the quality and cost of medical services that individuals receive. Most managed care systems offer HMO's and PPO's that individuals are encouraged to use for their health care services. Some managed care plans attempt to improve health quality, by emphasizing prevention of disease.
Maximum Dollar Limit: The maximum amount of money that a health
insurance company (or self-insured company)
will pay for claims within a specific time period. Maximum dollar
limits vary greatly. They may be based on or specified in terms of
types of illnesses or types of services. Sometimes they are specified
in terms of lifetime, sometimes for a year.
Medigap Insurance Policies: Medigap insurance is offered by private insurance companies, not the government. It is not the same as Medicare or Medicaid. These policies are designed to pay for some of the costs that Medicare does not cover.
Multiple Employer Trust (MET): A trust consisting of multiple small employers in the same industry, formed for the purpose of purchasing group health insurance or establishing a self-funded plan at a lower cost than would be available to each of the employers individually.
N
Network: A group of doctors, hospitals and other health care
providers contracted to provide services to health insurance companies customers
for less than their usual fees. Provider networks can cover a large geographic
market or a wide range of health care services. Insured individuals typically
pay less for using a network provider.
OOpen-ended HMO's: HMO's which allow enrolled individuals to use out-of-plan providers and still receive partial or full coverage and payment for the professional's services under a traditional indemnity plan.
Out-of-Plan (Out-of-Network): This phrase usually refers to
physicians, hospitals or other health care providers who are considered non-participants
in a health insurance plan (usually an HMO or PPO). Depending on an individual's
health insurance plan, expenses incurred by services provided by out-of-plan
health professionals may not be covered, or covered only in part by an individual's
insurance company.
Out-Of-Pocket Maximum:
A predetermined limited amount of money that an individual must pay out of
their own savings, before an insurance company or
(self-insured employer)
will pay 100 percent for an individual's health care expenses.
Outpatient: An individual
(patient) who receives health care services
(such as surgery)
on an outpatient basis, meaning they do not stay overnight in a hospital or
inpatient facility. Many health insurance companies have identified a
list of tests and procedures (including
surgery) that will not be covered
(paid for) unless
they are performed on an outpatient basis. The term outpatient is also
used synonymously with ambulatory to describe health care facilities where
procedures are performed.
PPlan Administration: Supervising the details and routine activities of installing and running a health plan, such as answering questions, enrolling individuals, billing and collecting premiums, and similar duties.
Pre-Admission Certification: Also called pre-certification review, or pre-admission review.
Approval by a case manager or insurance company representative
(usually a nurse)
for a person to be admitted to a hospital or in-patient facility, granted
prior to the admittance. Pre-admission certification often must be
obtained by the individual. Sometimes, however, physicians will
contact the appropriate individual. The goal of pre-admission
certification is to ensure that individuals are not exposed to inappropriate
health care services (services that are
medically unnecessary).
Pre-Admission Review: A review of an individual's health care
status or condition, prior to an individual being admitted to an inpatient health
care facility, such as a hospital. Pre-admission reviews are often
conducted by case managers or health insurance company representatives
(usually nurses)
in cooperation with the individual, his or her physician or health care
provider, and hospitals.
Preadmission Testing: Medical tests that are completed for an individual prior to being admitted to a hospital or inpatient health care facility.
Pre-existing Conditions: A medical condition that is excluded
from coverage by a health insurance company, because the condition was believed
to exist prior to the individual obtaining a policy from the particular insurance
company.
Preferred Provider Organizations
(PPO's): You or your employer receive discounted rates if you use doctors from a pre-selected group. If you use a physician outside the PPO plan, you must pay more for the medical care.
Primary Care Provider
(PCP):
A health care professional (usually a
physician) who is responsible for
monitoring an individual's overall health care needs. Typically, a PCP
serves as a "quarterback" for an individual's medical care, referring the
individual to more specialized physicians for specialist care.
Provider: Provider is a term used for health professionals who provide health care services. Sometimes, the term refers only to physicians. Often, however, the term also refers to other health care professionals such as hospitals, nurse practitioners, chiropractors, physical therapists, and others offering specialized health care services.
R
Reasonable and Customary Fees: The average fee charged by
a particular type of health care practitioner within a geographic area. The
term is often used by medical plans as the amount of money they will approve
for a specific test or procedure. If the fees are higher than the approved
amount, the individual receiving the service is responsible for paying the
difference. Sometimes, however, if an individual questions his or her physician
about the fee, the provider will reduce the charge to the amount that the health
insurance company has defined as reasonable and customary.
Rider: A
modification made to a Certificate of Insurance regarding the clauses and
provisions of a policy (usually adding or
excluding coverage).
Risk: The chance of loss, the degree of probability of loss or the amount of possible loss to the insuring company. For an individual, risk represents such probabilities as the likelihood of surgical complications, medications' side effects, exposure to infection, or the chance of suffering a medical problem because of a lifestyle or other choice. For example, an individual increases his or her risk of getting cancer if he or she chooses to smoke cigarettes.
SSecond Opinion: It is a medical opinion provided by a second physician or medical expert, when one physician provides a diagnosis or recommends surgery to an individual. Individuals are encouraged to obtain second opinions whenever a physician recommends surgery or presents an individual with a serious medical diagnosis.
Second Surgical Opinion: These are now standard benefits in many health insurance plans. It is an opinion provided by a second physician, when one physician recommends surgery to an individual.
Short-Term Disability: An injury or illness that keeps a person from working for a short time.
The definition of short-term disability
(and the time period over which coverage extends)
differs among insurance companies and employers. Short-term disability
insurance coverage is designed to protect an individual's full or partial
wages during a time of injury or illness
(that is not work-related) that would
prohibit the individual from working.
Short-Term Medical: Temporary coverage for an individual for a short period of time, usually from 30 days to six months.
Small Employer Group: Generally means groups with 1 99 employees. The definition may vary between states.
State Mandated Benefits: When a state passes laws requiring that health insurance plans include specific benefits.
Stop-loss: The dollar amount of claims filed for eligible expenses at which point you've paid 100 percent of your out-of-pocket and the insurance begins to pay at 100%. Stop-loss is reached when an insured individual has paid the deductible and reached the out-of-pocket maximum amount of co-insurance.
TTriple-Option: Insurance plans that offer three options from which an individual may choose. Usually, the three options are: traditional indemnity, an HMO, and a PPO.
UUnderwriter: The company that assumes responsibility for the risk, issues insurance policies and receives premiums.
Usual, Customary and Reasonable
(UCR) or Covered Expenses: An amount customarily charged for or covered for similar services and supplies which are medically necessary, recommended by a doctor, or required for treatment.
W
Waiting Period: A period of time when you are not covered by
health insurance for a particular problem.
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