Glossary of Terms

NETWORK A group of doctors, hospitals, labs and other providers that your health insurance contracts with so you can make visits at a pre-negotiated (and often discounted) rate.

COPAY A predetermined dollar amount you pay for visits to the doctor, prescriptions and other health care services (as specified by your plan).

DEDUCTIBLE The amount of money you need to pay out-of-pocket before your insurance begins contributing money to your health care costs (except where copays apply).

COINSURANCE The percentage you pay for the cost of covered health care services after you’ve met your deductible. For example, if the coinsurance under your plan is 20%, you would pay 20% of the cost of the service and your insurance would pay the remaining 80%.

OUT-OF-POCKET MAXIMUM The most you pay each year out-of-pocket for covered expenses. Once you’ve reached the out-of-pocket maximum, the health plan pays 100% for covered expenses for the remainder of the year.

PREVENTIVE CARE Services you receive when you aren’t sick or injured. Preventive care includes services such as annual physicals, wellness screenings and well-baby care.

HEALTH SAVINGS ACCOUNT (HSA) A tax-advantaged bank account you can pair with a High-Deductible Health Plan (HDHP). An HSA can be used to pay for qualified health care expenses with pretax funds.

FLEXIBLE SPENDING ACCOUNT (FSA) A tax-advantaged account that can be used to reimburse yourself for qualified health care expenses.

PREFERRED PROVIDER ORGANIZATION (PPO) A plan that offers a network of health care providers you can use for your medical care. You may visit a provider out of network, but the cost of in-network care typically costs less. You may pair this plan with a Health Care FSA to help pay for out-of-pocket expenses with pretax funds.

HIGH-DEDUCTIBLE HEALTH PLAN (HDHP) You pay the full cost for non-preventive medical care and prescription drugs until you meet the deductible. You may visit a provider out of network, but the cost of in-network care typically costs less. You may pair this plan with a Health Savings Account (HSA) to help pay for out-of-pocket expenses with pretax funds.