INSURANCE DEFINITIONS
  1. Annual Cost: The yearly amount you pay for approved benefits.
     

  2. Annual Maximum Amount:  The yearly amount your plan will pay for approved benefits.
     

  3. Carrier:  The insurance company (i.e. Humana - not Corporate Benefit Solutions.)
     

  4. Claim:  A bill submitted to your carrier for payment.
     

  5. Copay:  The amount you pay for a benefit (i.e. prescriptions/office visits - $10, $20, $30, etc.)
     

  6. Coinsurance:  The percentage of costs you pay for a covered service (i.e. 10%, 20%, 30%, etc.)
     

  7. Coordination of Benefits (COB):  Your insurance company combined with another (spouse) insurance company.
     

  8. Deductible:  The amount you pay first before your insurance company pays for your service.
     

  9. Dental Maintenance Organization (DMO):  A network where you choose one participating dentist.
     

  10. Effective Date:  The day and month your benefits are activated.
     

  11. Explanation of Benefits (EOB): Information you receive explaining how your claim was processed.
     

  12. Health Maintenance Organization (HMO):  A network where you choose a primary care physician.
     

  13. In-Network:  A group (network) of doctors, labs, or hospitals that 'participate' with network carriers, and agree to accept the payment offered by the insurance carrier.
     

  14. Mail Order Drugs:  Prescription drugs that can be ordered and received through the mail.
     

  15. Maintenance Drugs:  Prescription drugs that must be taken regularly (i.e. insulin, high blood pressure, etc.)
     

  16. Out-of-Network:  Doctors, labs, or hospitals that do not 'participate' with some insurance carriers.
     

  17. Primary Care Physician (PCP):  A network doctor that you choose who participates in a network plan.
     

  18. Point of Service (POS):  An HMO with a self-referral option that allows you to go out of the network.
     

  19. Preferred Provider Organization (PPO): A network plan of doctors, labs, and hospitals.
     

  20. Provider:  The doctor, lab, or hospital (i.e. 'participating' providers in HMO, POS, or PPO plans.)
     

  21. Reimbursement:  The amount returned to you, after a claim form has been submitted for payment.
     

  22. Traditional:  You can usually choose any doctor or hospital for service.
     

  23. Voluntary:  You agree to pay for the insurance coverage offered through your employer.