Helpful Terms & Definitions

Benefits come with their own vocabulary. Use this quick reference to understand the terms you’ll see when comparing plans and making your elections.

Coinsurance

Your share of the cost for care, shown as a percentage. You pay this after meeting your deductible, until you reach your out-of-pocket maximum.

Copay

A set amount you may pay for care, like a doctor’s visit or prescription.

Deductible

The amount you pay each year before your plan starts to help pay for care. Some services, like preventive care, are covered right away.

Evidence of Insurability

You may need to answer health questions to qualify for certain coverage, like life or disability coverage, when you enroll late or elect higher coverage amounts.

Guaranteed Issue

You can be approved for certain coverage without answering health questions.

Imputed Income

Some employer-paid benefits are counted as income for tax purposes.

In-Network Care

Care from doctors and hospitals in your plan’s network. This usually costs less than out-of-network services.

Out-of-Network Care

Care from doctors and hospitals not in your plan’s network. This usually costs more and you may be balance billed, which is when a provider bills you for the difference between what they charge and what your plan pays.

Out-of-Pocket Maximum

The most you will pay in a year for covered care. After you reach this amount, your plan pays 100%.

Premium

The cost of your plan. You pay part of it through your paycheck, and your employer pays the rest.

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Benefits Lingo

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Benefit Acronyms

AD&D: Accidental Death & Dismemberment

EAP: Employee Assistance Program

EOI: Evidence of Insurability

FSA: Flexible Spending Account

HMO: Health Maintenance Organization

HSA: Health Savings Account

LTD: Long-Term Disability

OOPM: Out-of-Pocket Maximum

PPO: Preferred Provider Organization

QLE: Qualifying Life Event

STD: Short-Term Disability