Terms
A thing providing protection against a possible eventuality; a way to address risk.
What is insurance?
An amount paid for the insurance coverage and usually paid per pay period.
What are premiums?
This is a health plan with a higher deductible that must be met before the insurance begins to share costs with the member.
What is a High Deductible Health Plan or HDHP?
This type of account is used for medical, dental, and vision expenses, and is owned by the member. Unused funds will roll over from year to year.
What is a Health Savings Account or HSA?
A life insurance plan that remains in force for the insured's lifetime and may accumulate cash value.
What is whole life insurance?
This is the type of insurance we work with for Businessolver clients.
What is group insurance?
An amount the individual owes for health care services before the plan begins to pay.
What is a deductible?
This is a health plan that has higher monthly premiums, flexibility to use providers in and out of network, and often has a co-payment for many services.
What is a Preferred Provider Organization or PPO?
This type of account is used for medical, dental, and vision expenses, and owned by the employer. Unused funds will NOT roll over from year to year.
What is a Flexible Spending Account or FSA?
This is a plan that pays a portion of your income to you if you are disabled for a short time.
What is short term disability?
A timeframe where new employees must wait to begin coverage after they become employed.
What is a probationary period?
A fixed amount paid by the individual for a covered health care service.
What is a co-payment?
This is a kind of medical plan with a specified list of providers (i.e. doctors, hospitals, etc.) that must be used to receive full benefits. Care is often coordinated by a primary care physician (PCP).
What is a Health Maintenance Organization or HMO?
The funds in this type of account can be used for qualified day care expenses for children under 13.
What is a Dependent Care Flexible Spending Account or DCFSA?
This is a plan that pays a portion of your income to you after short term disability has expired and can last until retirement.
What is long term disability?
A specific period of time where an employee can enroll in an employer-sponsored benefit.
What is an enrollment period or open/annual enrollment?
An individual's share of the costs of a covered health care service calculated as a percentage.
What is co-insurance?
A group life insurance plan that will only pay upon the insured's death and does not accumulate other cash value.
What is term life insurance?
This type of account can only be used for dental and vision expenses and is usually paired with an HSA.
What is a Limited Purpose Flexible Spending Account or LPFSA?
This type of spending account can only be used for transportation or parking expenses.
What is a commuter (transit/parking) account?
This is proof that the individual seeking voluntary benefit coverage is eligible.
What is evidence of insurability or EOI?
The most an individual will pay during a policy period before the plan pays 100% of covered health care costs.
What is out of pocket maximum?
A type of insurance paired with term life to be paid out if the insured is involved in an accident or loses a major limb.
What is Accidental Death and Dismemberment insurance or AD&D?
This type of account is owned and funded by the employer ONLY, is front-loaded, and has the same eligible expenses as an FSA.
What is a Health Reimbursement Arrangement or HRA?
This is a situation where one party has more information than the other, creating an imbalance of information between and individual and an insurance company.
What is adverse selection?