Glossary

Plain-language definitions for every term you will encounter. Browse by letter or filter by category.

Insurance Terms66Medical Billing48Appeal Process17Coverage Types54Pharmacy Benefits25Mental Health18

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A

Allowed Amount

The maximum amount your insurer considers payable for a covered service, also called the eligible or negotiated amount.

Medical Billing

Adverse Determination

A decision by your insurer to deny, reduce, or terminate coverage for a requested service or treatment.

Appeal Process

ACA

The Affordable Care Act, a federal law requiring insurers to cover preexisting conditions and offer essential health benefits.

Coverage Types

Appeal Deadline

The time limit, typically 180 days, within which you must file an appeal after receiving a denial from your insurer.

Appeal Process

Adult Child Coverage

The ACA requirement allowing children to remain on a parent's health insurance plan until age 26.

Coverage Types

Appeal Letter

A written request to your insurer explaining why a denied service should be covered, including supporting medical evidence.

Appeal Process

Authorization Number

A reference code issued by the insurer confirming that a service has been pre-approved for coverage.

Coverage Types

Adjustment

A change made to a previously processed claim that modifies the payment amount or patient responsibility.

Medical Billing

Applied Behavior Analysis

A therapy for autism spectrum disorder that many states require insurers to cover through autism insurance mandates.

Mental Health

Allowed Services

Healthcare services that your insurance plan covers as described in the plan document and summary of benefits.

Coverage Types

Accumulator

The running total of what you have paid toward your deductible and out-of-pocket maximum during the benefit year.

Insurance Terms

Assignment of Benefits

Your authorization allowing the insurer to pay the healthcare provider directly instead of reimbursing you.

Medical Billing

Annual Limit

The maximum amount a plan pays in a year, prohibited for essential health benefits under the ACA.

Coverage Types

Ambulance Coverage

Insurance coverage for emergency and medically necessary ambulance transport, with varying copay and authorization rules.

Coverage Types

Actuarial Value

The average percentage of total healthcare costs that a plan pays, used to define marketplace metal tier levels.

Insurance Terms

B

C

Copay

A fixed dollar amount you pay for a covered healthcare service, such as $25 for a doctor visit or $10 for a prescription.

Insurance Terms

Coinsurance

The percentage of costs you pay for a covered service after meeting your deductible, such as 20% of the allowed amount.

Insurance Terms

Case Management

A coordinated approach where an insurer assigns a nurse or specialist to help manage complex or long-term care needs.

Coverage Types

Coordination of Benefits

Rules determining which plan pays first when you are covered by two or more health insurance policies.

Insurance Terms

Clean Claim

A properly submitted claim with no errors or missing information that can be processed without additional documentation.

Medical Billing

CPT Code

Current Procedural Terminology codes that describe medical procedures and services for billing and insurance purposes.

Medical Billing

Credentialing

The process of verifying a provider's qualifications, licenses, and history before they can bill an insurance company.

Medical Billing

COBRA

A federal law letting you continue your employer's group health insurance for up to 18 months after losing your job.

Insurance Terms

Claim

A formal request submitted to your insurer by a provider or patient for payment of covered healthcare services.

Medical Billing

Claim Denial

An insurer's decision to not pay for a submitted service, which triggers the right to file an internal appeal.

Appeal Process

Concurrent Review

An ongoing evaluation by the insurer during a hospital stay to determine if continued inpatient care is medically necessary.

Coverage Types

Certificate of Coverage

A document proving you had prior health insurance, which may be needed when enrolling in a new plan.

Insurance Terms

Catastrophic Coverage

The Medicare Part D phase after the donut hole where you pay only a small coinsurance for covered prescriptions.

Pharmacy Benefits

CHIP

Children's Health Insurance Program providing low-cost coverage for children in families earning too much for Medicaid.

Insurance Terms

Cost-Sharing Reduction

A subsidy that lowers deductibles and copays for qualifying low-income individuals enrolled in Silver marketplace plans.

Insurance Terms

Catastrophic Plan

A low-premium, high-deductible marketplace plan available only to people under 30 or with a hardship exemption.

Insurance Terms

Consolidated Billing

A billing method where one provider submits a single claim for all services during a bundled episode of care.

Medical Billing

Community Rating

The ACA rule allowing premiums to vary only by age, location, tobacco use, and family size, not health status.

Insurance Terms

Clinical Guidelines

Evidence-based criteria that insurers use to determine whether a treatment or service meets medical necessity standards.

Coverage Types

Corrected Claim

A resubmitted claim that fixes errors in the original filing, such as wrong codes, dates, or patient information.

Medical Billing

Charity Care

Free or discounted hospital care provided to patients who cannot afford to pay their medical bills.

Medical Billing

Copay Accumulator Program

An insurer policy that excludes manufacturer copay assistance from counting toward your deductible or out-of-pocket maximum.

Pharmacy Benefits

Copay Maximizer Program

A program that spreads manufacturer copay assistance evenly across the year to reduce monthly out-of-pocket drug costs.

Pharmacy Benefits

Capitation

A fixed monthly payment per enrolled patient paid to a provider regardless of how many services the patient receives.

Medical Billing

Continuation Coverage

The right to keep your employer health plan temporarily after a qualifying event like job loss, under COBRA or state laws.

Insurance Terms

Conversion Privilege

The right to switch from a group health plan to an individual policy without a health screening when group coverage ends.

Insurance Terms

Creditable Coverage

Prior health coverage that counts toward reducing waiting periods when you switch to a new plan.

Insurance Terms

Care Coordination

The organization of patient care across multiple providers and settings to ensure safe and effective treatment.

Coverage Types

Crisis Intervention

Emergency mental health services to stabilize a person in psychiatric crisis, covered as emergency care under most plans.

Mental Health

Coupon Card

A manufacturer discount card that reduces your out-of-pocket cost for a brand-name medication at the pharmacy.

Pharmacy Benefits

Claim Status Inquiry

A request to check the processing status of a submitted claim, available through insurer portals or phone support.

Medical Billing

D

Deductible

The amount you pay out of pocket each year before your insurance begins covering its share of medical costs.

Insurance Terms

Denial

Your insurer's refusal to pay for a service, which can be based on coverage exclusions, medical necessity, or errors.

Appeal Process

Dependent Coverage

Health insurance that covers your spouse, children, or other qualifying family members under your plan.

Insurance Terms

Donut Hole

The Medicare Part D coverage gap where you temporarily pay a higher share of drug costs before catastrophic coverage begins.

Pharmacy Benefits

Dual Eligible

A person enrolled in both Medicare and Medicaid who may receive additional benefits and reduced cost-sharing.

Insurance Terms

Drug Exception Request

A formal request asking your insurer to cover a drug not on the formulary or at a lower cost-sharing tier.

Pharmacy Benefits

DRG

Diagnosis Related Group, a classification system used to determine fixed hospital payment amounts for Medicare inpatient stays.

Medical Billing

Downcoding

When an insurer pays for a less expensive procedure code than the one submitted by the provider.

Medical Billing

Duplicate Claim

A claim submitted more than once for the same service, which will be denied to prevent double payment.

Medical Billing

Disease Management Program

An insurer program providing education and support for patients with chronic conditions to improve health outcomes.

Coverage Types

Dependent Care FSA

A tax-advantaged account for paying child care or elder care expenses, separate from a healthcare FSA.

Insurance Terms

Durable Medical Equipment

Reusable medical devices like wheelchairs, CPAP machines, and walkers that insurers cover when medically necessary.

Coverage Types

E

Explanation of Benefits

A statement from your insurer detailing what was billed, what they paid, and what you owe for a medical service.

Insurance Terms

EPO

Exclusive Provider Organization plan that only covers in-network providers except in emergencies, with no referral requirement.

Insurance Terms

Experimental Treatment

A procedure or therapy not yet widely accepted that insurers may deny as not meeting established standards of care.

Coverage Types

External Review

An independent review of a denied claim by a third party outside your insurance company, whose decision is binding.

Appeal Process

Essential Health Benefits

Ten categories of services that ACA-compliant plans must cover, including hospitalization, prescriptions, and mental health.

Coverage Types

ERA

Electronic Remittance Advice, the digital version of a payment explanation sent from the insurer to the provider.

Medical Billing

Expedited Appeal

A fast-track appeal process required when a standard timeline could seriously jeopardize the patient's health.

Appeal Process

Exclusion

A specific service, condition, or treatment that your health insurance plan will not cover under any circumstances.

Coverage Types

ERISA

The federal law governing employer-sponsored health plans, which preempts state insurance regulations for self-funded plans.

Insurance Terms

Emergency Services

Care for conditions requiring immediate treatment, which must be covered at in-network rates regardless of provider status.

Coverage Types

Employer Mandate

The ACA requirement that employers with 50 or more full-time employees offer affordable health insurance or pay a penalty.

Coverage Types

Employee Assistance Program

A workplace benefit providing free short-term counseling and referral services for personal and work-related issues.

Mental Health

Explanation of Payment

A document sent to providers showing how an insurer processed and paid a claim, similar to an ERA.

Medical Billing

Eating Disorder Treatment

Coverage for conditions like anorexia and bulimia, subject to mental health parity rules for all levels of care.

Mental Health

Eligibility Verification

Checking that a patient's insurance is active and the service is covered before providing care.

Coverage Types

F

G

H

I

In-Network

Providers who have agreements with your insurer to charge negotiated rates, resulting in lower costs for you.

Insurance Terms

Internal Appeal

A formal request to your insurer to reconsider a denied claim, reviewed by someone who was not part of the original decision.

Appeal Process

Independent Review Organization

A third-party entity that conducts external reviews of insurance denials using qualified medical professionals.

Appeal Process

ICD-10

International Classification of Diseases codes used to identify diagnoses and justify the medical necessity of services.

Medical Billing

Individual Mandate

The ACA requirement that most people maintain health insurance, though the federal penalty was reduced to zero in 2019.

Coverage Types

InterQual

A commercial clinical decision support tool widely used by insurers to evaluate medical necessity for admissions and procedures.

Coverage Types

Inpatient Mental Health

Hospital-level psychiatric care requiring an overnight stay, subject to the same coverage rules as medical inpatient care.

Mental Health

Intensive Outpatient Program

A structured treatment program requiring several hours per day, multiple days per week, without an overnight stay.

Mental Health

Itemized Bill

A detailed statement listing every individual charge for services, supplies, and medications during a healthcare visit.

Medical Billing

Inpatient Admission

A formal order by a doctor admitting you to the hospital as an inpatient, triggering different coverage rules than observation.

Coverage Types

L

M

Medical Necessity

The standard insurers use to determine if a treatment is appropriate, effective, and required for a patient's condition.

Coverage Types

Modifier

A two-character code added to a CPT code to provide additional information about how a service was performed.

Medical Billing

Marketplace

The federal or state exchange where individuals can shop for and enroll in ACA-compliant health insurance plans.

Insurance Terms

Metal Tier

The four plan levels on the marketplace (Bronze, Silver, Gold, Platinum) that indicate how costs are shared between you and the plan.

Insurance Terms

Mental Health Parity

The legal requirement that insurers cover mental health and substance use services at the same level as medical services.

Mental Health

MHPAEA

The Mental Health Parity and Addiction Equity Act requiring equal coverage limits for mental health and medical benefits.

Mental Health

Medigap

A private supplemental insurance policy that helps cover Medicare cost-sharing like deductibles, copays, and coinsurance.

Insurance Terms

Medicare

The federal health insurance program for people 65 and older or with certain disabilities, divided into Parts A through D.

Insurance Terms

Medicare Advantage

A private insurance plan (Part C) that combines Medicare Parts A and B and often includes drug coverage and extra benefits.

Insurance Terms

Medicare Part D

The Medicare prescription drug benefit that helps cover the cost of outpatient medications through private plans.

Pharmacy Benefits

Medicaid

A joint federal and state program providing health coverage to low-income individuals, families, and people with disabilities.

Insurance Terms

Mail-Order Pharmacy

A pharmacy service that delivers medications by mail, often at a lower cost for maintenance prescriptions.

Pharmacy Benefits

Medical Loss Ratio

The ACA requirement that insurers spend at least 80% of premiums on medical care, or issue rebates to enrollees.

Insurance Terms

Medical Director

A physician employed by the insurer who reviews claims and makes coverage decisions based on medical necessity criteria.

Appeal Process

Milliman Care Guidelines

A widely used set of evidence-based clinical criteria that insurers apply when reviewing medical necessity determinations.

Coverage Types

Medication-Assisted Treatment

Treatment for substance use disorders combining FDA-approved medications with counseling and behavioral therapies.

Mental Health

Medical Billing Advocate

A professional who reviews medical bills for errors and negotiates with providers and insurers on the patient's behalf.

Medical Billing

Medical Debt

Unpaid medical bills that can be sent to collections, though recent rules limit their impact on credit reports.

Medical Billing

Mental Health Coverage

Insurance benefits for therapy, psychiatry, and psychological testing that must be equal to medical coverage under federal law.

Mental Health

Managed Care

A healthcare system where insurers contract with providers to deliver care at reduced costs with managed utilization.

Insurance Terms

N

O

P

Premium

The monthly payment you make to keep your health insurance active, regardless of whether you use any services.

Insurance Terms

PPO

Preferred Provider Organization plan allowing you to see any provider without referrals, with lower costs for in-network care.

Insurance Terms

POS

Point of Service plan combining HMO and PPO features, requiring referrals but allowing out-of-network care at higher cost.

Insurance Terms

Prior Authorization

Approval required from your insurer before receiving certain services, medications, or procedures to confirm coverage.

Coverage Types

Preferred Provider

A doctor, hospital, or other healthcare provider who has contracted with your insurer to provide services at lower rates.

Insurance Terms

Preexisting Condition

A health problem you had before your coverage start date, which ACA-compliant plans cannot use to deny coverage.

Coverage Types

Premium Tax Credit

A federal subsidy that reduces your monthly health insurance premium based on your income and household size.

Insurance Terms

Prospective Review

An insurer's evaluation of medical necessity before a service is provided, also known as prior authorization.

Coverage Types

Plan Document

The full legal contract describing all terms, conditions, exclusions, and benefits of your health insurance plan.

Insurance Terms

Primary Insurance

The insurance plan that pays first when you have coverage under two or more health plans.

Insurance Terms

Pharmacy Benefit Manager

A company that manages prescription drug benefits for insurers by negotiating prices and maintaining formularies.

Pharmacy Benefits

Preferred Drug

A medication on a lower formulary tier that the insurer encourages through reduced copays compared to non-preferred options.

Pharmacy Benefits

Pharmacy Benefit

The portion of your health plan that covers prescription medications, including retail and mail-order pharmacy services.

Pharmacy Benefits

Pre-Certification

Another term for prior authorization, requiring advance approval from the insurer before receiving certain services.

Coverage Types

Primary Care Physician

Your main doctor who provides routine care, coordinates specialist referrals, and manages your overall health.

Coverage Types

Prudent Layperson Standard

The legal standard defining an emergency as any condition a reasonable person would believe requires immediate care.

Coverage Types

Preventive Care

Routine health services like screenings, vaccinations, and checkups that ACA plans must cover at no cost to you.

Coverage Types

Platinum Plan

A marketplace plan with the highest premiums but lowest out-of-pocket costs, covering about 90% of average expenses.

Insurance Terms

Place of Service Code

A two-digit code identifying where a healthcare service was performed, such as office, hospital, or telehealth.

Medical Billing

Provider Directory

A list of doctors, hospitals, and other providers in your insurance plan's network that you can search by specialty or location.

Coverage Types

PHI

Protected Health Information, any individually identifiable health data covered by HIPAA privacy protections.

Coverage Types

Privacy Rights

Your legal right under HIPAA to access, amend, and control how your medical information is shared and used.

Coverage Types

Peer-to-Peer Review

A phone call between your doctor and the insurer's medical director to discuss why a denied service is medically necessary.

Appeal Process

Patient Responsibility

The total amount you owe after insurance pays its portion, including deductible, copay, and coinsurance amounts.

Medical Billing

Payment Plan

An arrangement to pay a medical bill in installments over time, often available interest-free from providers.

Medical Billing

Price Transparency

Federal rules requiring hospitals to publish standard charges for services and insurers to provide cost-estimator tools.

Medical Billing

Partial Hospitalization Program

A day program providing intensive psychiatric treatment for patients who need more support than outpatient therapy.

Mental Health

Parity Compliance

An insurer's adherence to federal laws requiring equal coverage of mental health and medical benefits.

Mental Health

Prior Authorization Denial

A refusal by the insurer to approve a requested service before it is performed, which can be appealed.

Appeal Process

Partial Denial

An insurer's decision to cover some but not all of the requested services, reducing the approved scope of treatment.

Appeal Process

Prescription Drug Coverage

The portion of your health plan that pays for medications, one of the ten essential health benefits under the ACA.

Pharmacy Benefits

Patient Assistance Program

A manufacturer program providing free or low-cost medications to patients who cannot afford them.

Pharmacy Benefits

Point of Service Plan

A managed care plan allowing out-of-network use at higher cost, combining features of HMO and PPO plan types.

Insurance Terms

PCORI Fee

A fee paid by health insurers and self-funded plans to fund the Patient-Centered Outcomes Research Institute.

Insurance Terms

Q

R

Remittance Advice

A document from the insurer to the provider showing how each claim was processed, adjusted, or denied.

Medical Billing

Retrospective Review

An insurer's evaluation of whether a service already provided was medically necessary and covered under the plan.

Coverage Types

Referral

A written order from your primary care doctor directing you to a specialist, required by HMO and some POS plans.

Coverage Types

Revenue Code

A four-digit code on hospital claims identifying where a service was provided or the type of facility charge.

Medical Billing

Rescission

The retroactive cancellation of your insurance policy, only allowed if you committed fraud or intentional misrepresentation.

Coverage Types

Reconsideration

A request to the insurer to re-examine a denied or underpaid claim, often the first step before a formal appeal.

Appeal Process

Residential Treatment

A structured live-in program for mental health or substance use treatment, often requiring prior authorization.

Mental Health

Retrospective Denial

A denial issued after care has already been provided, often due to lack of authorization or medical necessity disputes.

Appeal Process

Reimbursement

Payment from your insurer to you or your provider for covered healthcare services that have already been delivered.

Medical Billing

Rebate

A discount paid by drug manufacturers to insurers or PBMs after a medication is sold, reducing the insurer's net cost.

Pharmacy Benefits

Risk Pool

The group of people whose premiums and medical costs are combined to set rates and spread financial risk.

Insurance Terms

S

Step Therapy

A policy requiring you to try cheaper medications first before your insurer will cover a more expensive alternative.

Pharmacy Benefits

Specialty Pharmacy

A pharmacy that dispenses high-cost, complex medications requiring special handling, administration, or patient monitoring.

Pharmacy Benefits

Surprise Billing

An unexpected bill from an out-of-network provider at an in-network facility, now limited by the No Surprises Act.

Medical Billing

Subrogation

Your insurer's right to recover payment from a third party who caused the injury or illness they covered.

Insurance Terms

State Insurance Department

The state agency that regulates insurers and can investigate complaints about unfair denials or coverage practices.

Appeal Process

Summary of Benefits and Coverage

A standardized document that explains your plan's benefits, cost-sharing, and coverage limitations in plain language.

Insurance Terms

Special Enrollment Period

A window outside open enrollment when you can enroll due to a qualifying event like job loss, marriage, or birth.

Insurance Terms

Secondary Insurance

The insurance plan that pays after the primary insurer, covering some or all of the remaining patient responsibility.

Insurance Terms

Supplemental Insurance

An additional policy that helps cover costs your primary insurance does not pay, such as hospital cash or critical illness.

Insurance Terms

Self-Funded Plan

An employer health plan where the company pays claims directly instead of purchasing insurance from a carrier.

Insurance Terms

Specialist

A doctor focused on a specific area of medicine, such as cardiology or orthopedics, often requiring a referral to visit.

Coverage Types

Silver Plan

A marketplace plan with moderate premiums and costs, covering about 70% of average expenses and eligible for CSR subsidies.

Insurance Terms

Superbill

An itemized receipt from a provider listing diagnoses, procedures, and charges that you can submit for reimbursement.

Medical Billing

Substance Use Disorder

A condition involving problematic use of alcohol or drugs that insurers must cover at parity with medical conditions.

Mental Health

Short-Term Health Plan

A temporary insurance plan that does not have to comply with ACA rules, often with limited benefits and exclusions.

Insurance Terms

Skilled Nursing Facility

A facility providing short-term rehabilitation and nursing care, covered by insurance only after a qualifying hospital stay.

Coverage Types

Specialty Drug

A high-cost medication used for complex conditions that often requires special storage, handling, or administration.

Pharmacy Benefits

Stop-Loss Insurance

Coverage purchased by self-funded employers to limit their financial exposure when claims exceed a set threshold.

Insurance Terms

Second Opinion

A consultation with another doctor about a diagnosis or treatment plan, covered by most insurance plans.

Coverage Types

T

U

V

W

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