HomeMy WebLinkAboutGlossary of Health Coverage and Medical Terms Glossary of Health Coverage and Medical Terms Page 1 of 4
Glossary of Health Coverage and Medical Terms
x This glossary has many commonly used terms, but isn’t a full list. These glossary terms and definitions are intended
to be educational and may be different from the terms and definitions in your plan. Some of these terms also
might not have exactly the same meaning when used in your policy or plan, and in any such case, the policy or plan
governs. (See your Summary of Benefits and Coverage for information on how to get a copy of your policy or plan
document.)
x Bold blue text indicates a term defined in this Glossary.
x See page 4 for an example showing how d eductibles, co-insurance and out-of-pocket limits work together in a real
life situation.
Allowed Amount
Maximum amount on which payment is based for
covered health care services. This may be called “eligible
expense,” “payment allowance" or "negotiated rate." If
your pr ovider charges more than the allowed amount, you
may have to pay the difference. (See Bala nce Billing .)
App eal
A request for your health insurer or pla n to review a
decision or a grievance again.
Balance Billing
When a p rovid er bills you for the difference between the
provider’s charge and the a llowed amou nt. For example,
if the provider’s charge is $100 and the allowed amount
is $70, the provider may bill you for the remaining $30.
A preferred provider may not balance bill you for covered
services.
Co-i nsurance
Your share of the costs
of a covered health care
service, calculated as a
percent (for example,
20%) of the a llowed
amount for the service.
You pay co-insurance
plus any deductibles
you owe. For example,
if the healt h insurance or plan’s allowed amount for an
office visit is $100 and you’ve met your deductible, your
co-insurance payment of 20% would be $20. The health
insurance or plan pays the rest of the allowed amount.
Complications of Pregnancy
Conditions due to pregnancy, labor and delivery that
require medical care to prevent serious harm to the health
of the mother or the fetus. Morning sickness and a non-
emergency caesarean section aren’t complications of
pregnancy.
Co-payment
A fixed amount (for example, $15) you pay for a covered
health care service, usually when you receive the service.
The amount can vary by the type of covered health care
service.
Deductible
The amount you owe for
health care services your
health insurance or plan
covers before your health
insurance or plan begins
to pay. For example, if
your deductible is $1000,
your plan won’t pay
anything until you’ve met
your $1000 deductible for covered health care services
subject to the deductible. The deductible may not apply
to all services.
Durable Medical Equipment (DME)
Equipment and supplies ordered by a health care provider
for everyday or extended use. Coverage for DME may
include: oxygen equipment, wheelchairs, crutches or
blood testing strips for diabetics.
Emergency Medical Condition
An illness, injury, symptom or condition so serious that a
reasonable person would seek care right away to avoid
severe harm.
Emergency Medical Transportation
Ambulance services for an emergency medical condition.
Emergency Room Care
Emergency services you get in an emergency room.
Emergency Services
Evaluation of an emergency medical condition and
treatment to keep the condition from getting worse.
(See page 4 for a detailed example.)
Jane pays
20%
Her plan pays
80%
(See page 4 for a detailed example.)
Jane pays
1100%
Her plan pays
00%
OMB Control Numbers 1545-2229, 1210-0147, and 0938-1146
Glossary of Health Coverage and Medical Terms Page 2 of 4
Excluded Services
Health care services that your health insurance or plan
doesn’t pay for or cover.
Grievance
A complaint that you communicate to your health insurer
or pla n.
Habilitation Services
Health care services that help a person keep, learn or
improve skills and functioning for daily living. Examples
include therapy for a child who isn’t walking or talking at
the expected age. These services may include physical and
occupational therapy, speech-language pathology and
other services for people with disabilities in a variety of
inpatient andor outpatient settings.
Health Insurance
A contract that requires your health insurer to pay some
or all of your health care costs in exchange for a
premiu m.
Home Health Care
Health care services a person receives at home.
Hospice Services
Services to provide comfort and support for persons in
the last stages of a terminal illness and their families.
Hospitalization
Care in a hospital that requires admission as an inpatient
and usually requires an overnight stay. An overnight stay
for observation could be outpatient care.
Hospital Outpatient Care
Care in a hospital that usually doesn’t require an
overnight stay.
In-network Co-insurance
The percent (for example, 20%) you pay of the allowed
amount for covered health care services to pr oviders who
contract with your health insurance or plan. In-network
co-insurance usually costs you less than out-of-network
co-insurance.
In-network Co-payment
A fixed amount (for example, $15) you pay for covered
health care services to p roviders who contract with your
health insurance or plan. In-network co-payments usually
are less than out-of-network co-payments.
Medically Necessary
Health care services or supplies needed to prevent,
diagnose or treat an illness, injury, condition, disease or
its symptoms and that meet accepted standards of
medicine.
Netw ork
The facilities, p roviders and suppliers your health insurer
or pla n has contracted with to provide health care
services.
Non-Preferred Provider
A pr ovider who doesn’t have a contract with your health
insurer or p lan to provide services to you. You’ll pay
more to see a non-preferred provider. Check your policy
to see if you can go to all providers who have contracted
with your health insurance or plan, or if your health
insurance or plan has a “tiered” network and you must
pay extra to see some providers.
Out-of-network Co-i nsurance
The percent (for example, 40%) you pay of the allowed
amount for covered health care services to providers who
do not contract with your health insurance or plan. Out-
of-network co-insurance usually costs you more than in-
network co-insurance.
Out-of-network Co-payment
A fixed amount (for example, $30) you pay for covered
health care services from providers who do not contract
with your health insurance or plan. Out-of-network co-
payments usually are more than in-network co-payments.
Out-of-Pocket Li mit
The most you pay during a
policy period (usually a
year) before your health
insurance or plan begins to
pay 100% of the a llowed
amount . This limit never
includes your p remium,
bala nce-billed charges or
health care your health
insurance or plan doesn’t cover. Some health insurance
or plans don’t count all of your c o-payments, d eductibles,
co-insurance payments, out-of-network payments or
other expenses toward this limit.
Physician Services
Health care services a licensed medical physician (M.D. –
Medical Doctor or D.O. – Doctor of Osteopathic
Medicine) provides or coordinates.
(See page 4 for a detailed example.)
Jane pays
00%
Her plan pays
1100%
Glossary of Health Coverage and Medical Terms Page 3 of 4
Plan
A benefit your employer, union or other group sponsor
provides to you to pay for your health care services.
Preauthorization
A decision by your health insurer or p lan that a health
care service, treatment plan, prescription drug or durable
medical equip ment is medically necessary. Sometimes
called prior authorization, prior approval or
precertification. Your health insurance or plan may
require preauthorization for certain services before you
receive them, except in an emergency. Preauthorization
isn’t a promise your health insurance or plan will cover
the cost.
Preferred Provider
A pr ovider who has a contract with your health insurer or
plan to provide services to you at a discount. Check your
policy to see if you can see all preferred providers or if
your health insurance or plan has a “tiered” network and
you must pay extra to see some providers. Your health
insurance or plan may have preferred providers who are
also “participating” providers. Participating providers
also contract with your health insurer or plan, but the
discount may not be as great, and you may have to pay
more.
Premium
The amount that must be paid for your hea lth insurance
or pla n. You andor your employer usually pay it
monthly, quarterly or yearly.
Prescription Drug Coverage
Health insurance or pla n that helps pay for p rescription
drugs and medications.
Prescription Drugs
Drugs and medications that by law require a prescription.
Primary Care Physician
A physician (M.D. – Medical Doctor or D.O. – Doctor
of Osteopathic Medicine) who directly provides or
coordinates a range of health care services for a patient.
Primary Care Provider
A physician (M.D. – Medical Doctor or D.O. – Doctor
of Osteopathic Medicine), nurse practitioner, clinical
nurse specialist or physician assistant, as allowed under
state law, who provides, coordinates or helps a patient
access a range of health care services.
Provider
A physician (M.D. – Medical Doctor or D.O. – Doctor
of Osteopathic Medicine), health care professional or
health care facility licensed, certified or accredited as
required by state law.
Rec onstructive Surgery
Surgery and follow-up treatment needed to correct or
improve a part of the body because of birth defects,
accidents, injuries or medical conditions.
Rehabilitation Services
Health care services that help a person keep, get back or
improve skills and functioning for daily living that have
been lost or impaired because a person was sick, hurt or
disabled. These services may include physical and
occupational therapy, speech-language pathology and
psychiatric rehabilitation services in a variety of inpatient
andor outpatient settings.
Skilled Nursing Ca re
Services from licensed nurses in your own home or in a
nursing home. Skilled care services are from technicians
and therapists in your own home or in a nursing home.
Specialist
A physician specialist focuses on a specific area of
medicine or a group of patients to diagnose, manage,
prevent or treat certain types of symptoms and
conditions. A non-physician specialist is a p r ovider who
has more training in a specific area of health care.
UCR (Usual, Customary and Reasonable)
The amount paid for a medical service in a geographic
area based on what pr oviders in the area usually charge
for the same or similar medical service. The UCR
amount sometimes is used to determine the allowed
amount .
Urgent Care
Care for an illness, injury or condition serious enough
that a reasonable person would seek care right away, but
not so severe as to require emergenc y room care.
Glossary of Health Coverage and Medical Terms Page 4of 4How You and Your Insurer Share Costs - ExampleJane’s Plan Deductible: $1,500Co-insurance: 20% Out-of-Pocket Limit: $5,000 Jane reaches her $1,500 deductible,co-insurancebeginsJane has seen a doctor several times and paid $1,500 in total. Her plan pays some of the costs for her next visit. Office visit costs: $75 Jane pays: 20% of $75 = $15 Her plan pays: 80% of $75 = $60 Jane pays 220% Her plan pays 880% Jane pays 1100% Her plan pays 00% Jane hasn’t reached her $1,500 deductibleyetHer plan doesn’t pay any of the costs. Office visit costs: $125 Jane pays: $125 Her plan pays: $0 January 1stBeginning of CoveragePeriodDecember 31stEnd of Coverage PeriodmorecostsmorecostsJane reaches her $5,000 out-of-pocket limitJane has seen the doctor often and paid $5,000 in total. Her plan pays the full cost of her covered health care services for the rest of the year. Office visit costs: $200 Jane pays: $0 Her plan pays: $200 Jane pays 00% Her plan pays 1100%