Glossary of Health Insurance Terms

Catastrophic Coverage- coverage for major medical care which would ordinarily render the average person unable to pay.

COBRA - legislation that requires continuance of an employee's health coverage after ceasing to work and extending to dependents under the policy

Coinsurance-the percentage contribution required of the recipient toward the provision of a particular health care service Comprehensive Coverage- coverage for hospital care and physician expenses

Copayment- a flat rate contribution toward the cost of a particular health care service

Deductible - the annual amount that a policy holder needs to expend before indemnity is applied by a health insurance policy.

Emergency Care - emergency care at hospital or other service provider

Global charging - government payment to health care providers based on an annual cost rather than for individual services provided, which enables strategic planning and monitoring on a larger scale

Group insurance - economies of scale achieved by purchasing health insurance in bulk

Health Maintenance Organization (HMO) - a medical facility operated by a managed care plan insurer

High Risk Individuals -individuals with a predisposition or an existing illness that is most likely to require the provision of ongoing heath care treatment

Indemnity plan - health insurance plan where the recipient accesses health care and is indemnified by the insurer for the cost incurred

In Patient Care- hospital care that requires an overnight stay Lifetime Policy Limit- the maximum amount claimable under the policy for health care services.

Long Term Coverage - coverage for nursing home costs and other prolonged treatment

Managed Care Plan - health insurance plan where preventative treatment is encouraged with financial incentives and large scale provision of health care is offered in dedicated facilities

Medicaid - public health care for low income, families, children, pregnant women and individuals funded with government revenue