This section includes definitions of some insurance terms used in the world of health insurance. Click on the term to show/hide the definition
Flexible Spending Account
High-Deductible Health Plan
Health Savings Account (HSA)
Permits the participant to set aside a stated amount of money per year, up to a statutory maximum, to be used toward health-care expenses (such as meeting the deductible and co-payments of the insurance policy). The funds that are set aside get tax-advantaged treatment, but if all are not used for approved medical purposes (which can often include over-the-counter drugs), there is a forfeiture of the unused portion. Therefore, it is important to have a fairly accurate idea of what individual/family health-care expenses will be so that a proper amount can be designated for the HSA.
Health Reimbursement Account (HRA)
HRA plans are employer-funded medical-reimbursement plans. The employer sets aside a specific amount of pre-tax dollars for employees to pay for health-care expenses on an annual basis. Based on the plan design, HRAs can generate significant savings in overall health benefits.
Reinsurance / Stop Loss Coverage
A form of insurance purchased by self-insured employers that limits the amount the employers will have to pay for each member’s health care services (individual limit) and/or for the total health care expense liability incurred by the employer (group limit). Reinsurance/Stop Loss coverage helps employers better predict their overall health care expenses for any given year. Click here to see a list of reinsurance carriers with whom we are licensed.
Prescription Drug Tiers:
Preferred Brand-Name Drugs