Glossary of Terms

HIPAA

Health Insurance Portability and Accountability Act

HMO

Health Maintenance Organization

PPO

Preferred Provider Organization

POS

Point Of Service. In simple terms is an HMO that allows a member to go out of network if they choose. With this type of plan the member decides at the point of service if they want to use a network provider or go to a provider out of the network.

SECTION 125

(CAFETERIA PLAN) often referred to as a premium conversion plan allows a business to deduct premiums for group plans from an employees paycheck before taxes as opposed to after taxes. This creates a tax savings for both the employer and employee.

DEDUCTIBLE

the portion of a medical bill which an insured person must pay before the health insurance plan will begin paying a portion.

CO-PAY

an amount an insured person must pay when receiving services from a doctor or hospital. Not to be confused with a deductible is a co-pay, most of the time, must be paid on every office visit or hospital admission.