Beneficiary
The person who receives the insurance proceeds at the death of the insured.
Coinsurance
A percentage of the medical costs you share with your health insurer after you have reached your plan deductible.
Copay
The flat fee you pay out of pocket each time you visit a provider.
Deductible
The amount you pay during the year for medical services, before your insurance starts to pay.
Disability
A physical or mental condition that makes an insured person incapable of performing one or more duties of his or her occupation.
Flexible Spending Account (FSA)
Also known as a flexible spending arrangement, this is a special account you put money into to pay for certain out-of-pocket health care and dependent care costs. This means you’ll save an amount equal to the taxes you would have paid on the money you set aside.
Formulary
A list of generic and brand name prescribed medications covered by your health plan that treat the same conditions but cost less.
PPO Network
A group of doctors, hospitals, and other health care providers that accept payments from your health insurance company.
Out-Of-Pocket Maximum
The annual limit you must pay out-of-pocket for everything during your plan year, except your monthly premium, which does not count toward the out-of-pocket maximum.
Premium
The amount you pay every month for health insurance, usually taken out of your paycheck through payroll deductions.
