A-Z Dictionary

Insurance Glossary

Plain-English definitions of health insurance terms. No jargon, just clear explanations of what you need to know.

Premium

Costs

The amount you pay to your insurance company, usually monthly, to keep your health insurance active.

Example:

If your premium is $400/month, you pay $400 every month whether you visit the doctor or not.

Related Terms:

Deductible
Copay
Coinsurance

Deductible

Costs

The amount you must pay out-of-pocket for covered services before your insurance starts paying.

Example:

With a $2,000 deductible, you pay the first $2,000 of covered medical costs yourself before insurance helps pay.

Related Terms:

Premium
Out-of-Pocket Maximum
Coinsurance

Copay (Copayment)

Costs

A fixed amount you pay for a covered service, usually when you receive the service.

Example:

You might pay a $30 copay when you visit your primary care doctor.

Related Terms:

Coinsurance
Deductible

Coinsurance

Costs

The percentage of costs you pay for covered services after meeting your deductible.

Example:

With 20% coinsurance, if a procedure costs $1,000, you pay $200 and insurance pays $800.

Related Terms:

Copay
Deductible
Out-of-Pocket Maximum

Out-of-Pocket Maximum

Costs

The most you have to pay for covered services in a year. After you reach this amount, insurance pays 100%.

Example:

With a $7,000 out-of-pocket max, once you've paid $7,000 in deductibles, copays, and coinsurance, insurance covers everything else.

Related Terms:

Deductible
Coinsurance
Copay

Out-of-Pocket Costs

Costs

Healthcare costs you pay yourself, including deductibles, copays, and coinsurance.

Example:

Your out-of-pocket costs for the year include your $2,000 deductible, plus copays and coinsurance up to your maximum.

Related Terms:

Out-of-Pocket Maximum
Deductible
Copay

Annual Deductible

Costs

The deductible amount that resets each plan year.

Example:

If you meet your $3,000 annual deductible in December, it resets to $0 on January 1st.

Related Terms:

Deductible
Plan Year

Family Deductible

Costs

The total deductible for all family members combined on a family plan.

Example:

With a $6,000 family deductible, all family members' expenses count toward this amount.

Related Terms:

Individual Deductible
Embedded Deductible

Individual Deductible

Costs

The deductible that applies to each person on a plan.

Example:

With a $2,000 individual deductible, each family member must meet their own $2,000 before insurance pays.

Related Terms:

Family Deductible
Embedded Deductible

Embedded Deductible

Costs

A family plan structure where each individual has their own deductible within the family deductible.

Example:

A plan might have a $2,000 individual/$4,000 family embedded deductible.

Related Terms:

Family Deductible
Aggregate Deductible

Aggregate Deductible

Costs

A family deductible that must be met by the combined expenses of all family members.

Example:

With an aggregate $6,000 deductible, all expenses combine until the family reaches $6,000.

Related Terms:

Embedded Deductible
Family Deductible

Allowed Amount

Costs

The maximum amount an insurer will pay for a covered service.

Example:

If the allowed amount for an office visit is $150 and the doctor charges $200, you may owe the $50 difference if out-of-network.

Related Terms:

Reasonable and Customary
Balance Billing

Balance Billing

Costs

When an out-of-network provider bills you for the difference between their charge and what insurance pays.

Example:

Doctor charges $300, insurance allows $200, you may be balance billed $100.

Related Terms:

Out-of-Network
Allowed Amount

Reasonable and Customary

Costs

The amount insurance determines is appropriate for a medical service in your area.

Example:

Your insurer may cover services at 80% of the reasonable and customary rate.

Related Terms:

Allowed Amount
UCR

Cost-Sharing

Costs

The portion of healthcare costs you pay (deductibles, copays, coinsurance).

Example:

Your cost-sharing is lower with Gold plans than Bronze plans.

Related Terms:

Coinsurance
Copay
Deductible

Cost-Sharing Reduction (CSR)

Costs

Extra savings that lower deductibles, copays, and coinsurance for Silver plans if you qualify.

Example:

With CSR, your Silver plan deductible might drop from $3,000 to $1,000.

Related Terms:

Silver Plan
Premium Tax Credit

Premium Subsidy

Costs

Financial assistance that reduces your monthly premium payment.

Example:

A $200/month subsidy reduces your $450 premium to $250.

Related Terms:

Premium Tax Credit
APTC

Actuarial Value

Costs

The percentage of total covered costs a plan pays on average.

Example:

A Gold plan has 80% actuarial value, meaning it covers 80% of costs on average.

Related Terms:

Metal Tiers
Cost-Sharing

Medical Loss Ratio (MLR)

Costs

The percentage of premium dollars insurers must spend on medical care and quality improvement.

Example:

Under ACA, insurers must spend at least 80-85% of premiums on medical care.

Related Terms:

Premium
Rebate

Stop-Loss

Costs

Another term for out-of-pocket maximum.

Example:

Once you hit your stop-loss limit, insurance covers 100% of covered expenses.

Related Terms:

Out-of-Pocket Maximum

Premium Rating

Costs

How insurers set premiums based on factors like age, location, and tobacco use.

Example:

Older adults may pay up to 3 times more than younger adults under ACA rating rules.

Related Terms:

Premium
Age Rating

Tobacco Rating

Costs

The premium surcharge (up to 50%) for tobacco users.

Example:

A tobacco user might pay $600/month vs $400/month for non-tobacco users.

Related Terms:

Premium Rating
Surcharge

Age Rating

Costs

Premium variation based on age, with older adults paying more.

Example:

A 60-year-old may pay 3x what a 21-year-old pays for the same plan.

Related Terms:

Premium Rating
Community Rating

Geographic Rating

Costs

Premium variation based on where you live.

Example:

The same plan costs more in New York City than in rural areas.

Related Terms:

Premium Rating
Rating Area

Benefit Cap

Costs

A limit on benefits covered by insurance. ACA plans cannot have lifetime or annual caps on essential benefits.

Example:

Old plans might have had $1 million lifetime caps; ACA plans have no lifetime limits.

Related Terms:

Essential Health Benefits
Annual Limit

Copay After Deductible

Costs

A plan design where copays don't apply until you meet your deductible.

Example:

You pay full cost until meeting your deductible, then copays kick in.

Related Terms:

Deductible
Copay

Per-Diem

Costs

A fixed daily amount paid for hospital stays.

Example:

Insurance might pay $1,000 per-diem for hospital days.

Related Terms:

Hospital Benefits
Inpatient

Maximum Out-of-Pocket

Costs

Another term for out-of-pocket maximum.

Example:

Your maximum out-of-pocket for 2025 cannot exceed $9,450 for individual coverage.

Related Terms:

Out-of-Pocket Maximum
Stop-Loss

Premium Equivalent

Costs

The value of employer-sponsored insurance used for comparison.

Example:

Used to determine if employer coverage is affordable under ACA.

Related Terms:

Affordability
Employer Coverage

Tiered Network

Costs

Different cost-sharing levels for different provider groups.

Example:

Tier 1 providers have $20 copays, Tier 2 have $40 copays.

Related Terms:

Provider Network
Preferred Provider

Value-Based Cost-Sharing

Costs

Lower copays for high-value services like preventive care.

Example:

Copays might be lower for generic drugs vs brand-name drugs.

Related Terms:

Cost-Sharing
Preventive Care

Calendar Year Deductible

Costs

A deductible that runs January 1 - December 31.

Example:

Most ACA plans use calendar year deductibles.

Related Terms:

Plan Year
Annual Deductible

Separate Deductible

Costs

A deductible for specific services like pharmacy or medical equipment.

Example:

A plan might have a $2,000 medical deductible plus a $500 prescription drug deductible.

Related Terms:

Deductible
Pharmacy Benefit

Integrated Deductible

Costs

A single deductible that applies to all covered services.

Example:

Medical visits, prescriptions, and hospital stays all count toward the same deductible.

Related Terms:

Deductible
Combined Benefit

Prior Authorization Fee

Costs

Some services may have additional costs if prior authorization requirements aren't met.

Example:

Getting an MRI without prior authorization might result in higher out-of-pocket costs.

Related Terms:

Prior Authorization
Utilization Review

Metal Tiers

Coverage

Health plan categories (Bronze, Silver, Gold, Platinum) that indicate how you and the plan share costs.

Example:

Bronze plans have lower premiums but higher deductibles. Platinum plans have higher premiums but lower out-of-pocket costs.

Related Terms:

Bronze Plan
Silver Plan
Gold Plan
Platinum Plan

In-Network

Coverage

Doctors, hospitals, and other providers that have a contract with your insurance company.

Example:

Using in-network providers costs less because they have agreed to discounted rates with your insurer.

Related Terms:

Out-of-Network
PPO
HMO

Pre-existing Condition

Coverage

A health problem you had before your insurance coverage started. ACA plans cannot deny you coverage or charge more for these.

Example:

If you have diabetes or asthma, insurers must cover you at the same price as someone without these conditions.

Related Terms:

Essential Health Benefits
ACA

Out-of-Network

Coverage

Providers who don't have a contract with your insurance plan.

Example:

Out-of-network care typically costs significantly more and may not be covered at all.

Related Terms:

In-Network
Balance Billing

Essential Health Benefits

Coverage

Ten categories of services that ACA-compliant plans must cover.

Example:

Includes emergency services, hospitalization, prescription drugs, maternity care, and mental health.

Related Terms:

ACA
Minimum Essential Coverage

Minimum Essential Coverage

Coverage

The minimum level of coverage required under the ACA.

Example:

ACA marketplace plans, Medicaid, and most employer plans provide minimum essential coverage.

Related Terms:

Essential Health Benefits
Individual Mandate

Covered Services

Coverage

Medical services your insurance plan will pay for.

Example:

Check your plan's benefits summary to see which services are covered.

Related Terms:

Exclusions
Benefits

Exclusions

Coverage

Services not covered by your insurance plan.

Example:

Common exclusions include cosmetic surgery and experimental treatments.

Related Terms:

Covered Services
Limitations

Coverage Gap

Coverage

A period when you don't have health insurance.

Example:

Having a coverage gap can limit your enrollment options outside open enrollment.

Related Terms:

Continuous Coverage
Special Enrollment

Provider Network

Coverage

The group of doctors, hospitals, and other providers that contract with your insurance.

Example:

Check if your doctor is in the network before choosing a plan.

Related Terms:

In-Network
Network Directory

Network Directory

Coverage

A list of all in-network providers for your insurance plan.

Example:

Use the online network directory to find in-network specialists.

Related Terms:

Provider Network
In-Network

Narrow Network

Coverage

A limited provider network with fewer doctors and hospitals.

Example:

Narrow network plans often have lower premiums but less provider choice.

Related Terms:

Provider Network
Broad Network

Broad Network

Coverage

A provider network with extensive doctor and hospital choices.

Example:

Broad network plans offer more flexibility but may cost more.

Related Terms:

Provider Network
Narrow Network

Bronze Plan

Coverage

Lowest-tier ACA plan covering 60% of costs, with lower premiums and higher out-of-pocket costs.

Example:

Bronze plans work well if you're healthy and want lower monthly payments.

Related Terms:

Metal Tiers
Silver Plan

Silver Plan

Coverage

Mid-tier ACA plan covering 70% of costs, eligible for cost-sharing reductions.

Example:

Silver plans are often the best value if you qualify for cost-sharing reductions.

Related Terms:

Cost-Sharing Reduction
Metal Tiers

Gold Plan

Coverage

Higher-tier ACA plan covering 80% of costs, with higher premiums and lower out-of-pocket costs.

Example:

Gold plans are good if you use healthcare frequently.

Related Terms:

Metal Tiers
Platinum Plan

Platinum Plan

Coverage

Highest-tier ACA plan covering 90% of costs, with the highest premiums and lowest out-of-pocket costs.

Example:

Platinum plans are best for people with high medical needs.

Related Terms:

Metal Tiers
Gold Plan

Catastrophic Plan

Coverage

Low-premium plan for under-30 or those with hardship exemptions, covering essential benefits after high deductible.

Example:

Catastrophic plans protect against worst-case scenarios but have high deductibles.

Related Terms:

High-Deductible Plan
Young Adult

Minimum Value

Coverage

A plan covering at least 60% of total costs.

Example:

Employer plans must provide minimum value to meet ACA requirements.

Related Terms:

Actuarial Value
Employer Coverage

Summary of Benefits and Coverage (SBC)

Coverage

A standard form explaining what a plan covers and costs.

Example:

Review the SBC to compare plans side-by-side.

Related Terms:

Plan Documents
Benefits

Certificate of Coverage

Coverage

Document outlining your plan's benefits, exclusions, and limitations.

Example:

Your certificate of coverage contains detailed information about what's covered.

Related Terms:

Plan Documents
Policy

Rider

Coverage

Additional coverage you can add to your plan.

Example:

You might add a dental rider to your medical plan.

Related Terms:

Supplemental Coverage
Add-on

Formulary

Coverage

A list of prescription drugs covered by your plan.

Example:

Check the formulary to see if your medications are covered.

Related Terms:

Pharmacy Benefit
Tier

Tier (Drug)

Coverage

Categories of prescription drugs with different cost-sharing levels.

Example:

Tier 1 generic drugs cost less than Tier 3 brand-name drugs.

Related Terms:

Formulary
Generic Drug

Prior Authorization

Coverage

Approval required from insurance before receiving certain services.

Example:

Your MRI may require prior authorization to ensure it's covered.

Related Terms:

Utilization Review
Pre-certification

Step Therapy

Coverage

Requirement to try lower-cost treatments before insurance covers more expensive options.

Example:

You may need to try generic drugs before insurance covers brand-name alternatives.

Related Terms:

Prior Authorization
Formulary

Medical Necessity

Coverage

Healthcare services considered essential for diagnosis or treatment.

Example:

Insurance only covers services deemed medically necessary.

Related Terms:

Prior Authorization
Coverage Determination

Durable Medical Equipment (DME)

Coverage

Reusable medical equipment like wheelchairs, walkers, and hospital beds.

Example:

Your plan may cover 80% of DME costs after you meet your deductible.

Related Terms:

Medical Equipment
Covered Services

Telemedicine

Coverage

Virtual healthcare services provided via phone or video.

Example:

Many plans now offer $0 copay telemedicine visits.

Related Terms:

Virtual Visit
Telehealth

Behavioral Health

Coverage

Mental health and substance abuse services.

Example:

ACA plans must cover behavioral health as an essential benefit.

Related Terms:

Mental Health
Substance Abuse

HMO (Health Maintenance Organization)

Plan Types

A plan type that requires you to use doctors and hospitals in its network and get referrals to see specialists.

Example:

With an HMO, you must choose a primary care doctor and get their referral before seeing a cardiologist.

Related Terms:

PPO
EPO
POS

PPO (Preferred Provider Organization)

Plan Types

A plan type that offers more flexibility to see any doctor, though costs are lower with in-network providers.

Example:

With a PPO, you can see a specialist without a referral, but pay less if you use in-network doctors.

Related Terms:

HMO
EPO
In-Network

EPO (Exclusive Provider Organization)

Plan Types

A plan that covers services only within its network, except emergencies.

Example:

EPOs don't require referrals but don't cover out-of-network care.

Related Terms:

HMO
PPO

POS (Point of Service)

Plan Types

A plan combining HMO and PPO features, requiring a primary care doctor but allowing out-of-network care at higher cost.

Example:

POS plans let you go out-of-network but you'll pay more.

Related Terms:

HMO
PPO

HDHP (High-Deductible Health Plan)

Plan Types

A plan with lower premiums and higher deductibles, HSA-eligible.

Example:

HDHPs have deductibles of at least $1,600 for individuals in 2025.

Related Terms:

HSA
Deductible

HSA-Eligible Plan

Plan Types

A high-deductible plan that allows you to contribute to a Health Savings Account.

Example:

HSA-eligible plans let you save tax-free money for medical expenses.

Related Terms:

HSA
HDHP

Marketplace Plan

Plan Types

Health insurance sold through federal or state exchanges under the ACA.

Example:

You can shop for marketplace plans at HealthCare.gov.

Related Terms:

Exchange
ACA Plan

Off-Exchange Plan

Plan Types

ACA-compliant plans sold outside the marketplace.

Example:

Off-exchange plans have the same essential benefits but you can't use subsidies.

Related Terms:

Marketplace Plan
Direct Enrollment

Employer-Sponsored Insurance (ESI)

Plan Types

Health coverage provided through your employer.

Example:

Employer-sponsored insurance is often more affordable than individual plans.

Related Terms:

Group Coverage
COBRA

Group Coverage

Plan Types

Insurance covering a group of people, typically through an employer or organization.

Example:

Group coverage often has lower rates than individual plans.

Related Terms:

Employer Coverage
Association Plan

Individual Coverage

Plan Types

Insurance you buy for yourself, not through an employer.

Example:

Self-employed people often need individual coverage.

Related Terms:

Marketplace Plan
Private Insurance

Family Coverage

Plan Types

A plan covering you, your spouse, and dependents.

Example:

Family coverage typically costs more than individual coverage.

Related Terms:

Dependent
Family Deductible

Short-Term Health Insurance

Plan Types

Temporary coverage for gaps between plans, not ACA-compliant.

Example:

Short-term plans are cheaper but don't cover pre-existing conditions.

Related Terms:

Gap Coverage
Limited Benefit

Limited Benefit Plan

Plan Types

Plans with restrictions on coverage, not meeting ACA standards.

Example:

Fixed indemnity plans pay set amounts regardless of actual costs.

Related Terms:

Short-Term Insurance
Supplemental

Medigap

Plan Types

Supplemental insurance that covers Medicare gaps.

Example:

Medigap helps pay Medicare deductibles and coinsurance.

Related Terms:

Medicare
Supplemental Insurance

Medicare Advantage

Plan Types

Private insurance that replaces Original Medicare.

Example:

Medicare Advantage plans often include prescription drug coverage.

Related Terms:

Medicare Part C
Medicare

Medicaid

Plan Types

Government health program for low-income individuals and families.

Example:

Medicaid eligibility varies by state, with some states expanding coverage.

Related Terms:

CHIP
Expansion

CHIP (Children's Health Insurance Program)

Plan Types

Low-cost health coverage for children in families earning too much for Medicaid.

Example:

CHIP provides comprehensive coverage for children at low or no cost.

Related Terms:

Medicaid
Children

Medicare

Plan Types

Federal health insurance for people 65+ and certain younger people with disabilities.

Example:

Medicare Part A covers hospital stays, Part B covers doctor visits.

Related Terms:

Medicare Advantage
Medigap

Tricare

Plan Types

Health coverage for military service members, retirees, and families.

Example:

Tricare offers several plan options for military families.

Related Terms:

Military
VA Healthcare

Self-Funded Plan

Plan Types

Employer plan where the employer pays claims directly instead of paying premiums to an insurer.

Example:

Large employers often use self-funded plans to control costs.

Related Terms:

Employer Coverage
Stop-Loss Insurance

Fully-Insured Plan

Plan Types

Employer plan where premiums are paid to an insurance company that assumes the risk.

Example:

Small businesses typically use fully-insured plans.

Related Terms:

Employer Coverage
Group Plan

Multi-State Plan

Plan Types

Plans available in multiple states through the marketplace.

Example:

Multi-state plans offer consistent coverage if you move between states.

Related Terms:

Marketplace Plan
Federal Exchange

Association Health Plan

Plan Types

Coverage for small businesses and self-employed through associations.

Example:

Trade associations may offer group rates to members.

Related Terms:

Group Coverage
Small Business

Student Health Plan

Plan Types

Insurance offered by colleges and universities to students.

Example:

Student health plans often cover campus health center visits.

Related Terms:

Young Adult
School Coverage

Premium Tax Credit

ACA

Financial assistance from the government to help lower your monthly insurance premium.

Example:

Based on your income, you might get a $300/month tax credit, reducing your $500 premium to $200.

Related Terms:

Subsidy
FPL
Advance Premium Tax Credit

Federal Poverty Level (FPL)

ACA

A measure of income used to determine eligibility for subsidies and Medicaid.

Example:

If you earn between 100-400% of FPL, you likely qualify for premium tax credits.

Related Terms:

Premium Tax Credit
Subsidy
Medicaid

Affordable Care Act (ACA)

ACA

Federal law (Obamacare) that reformed healthcare, requiring coverage of essential benefits and prohibiting pre-existing condition discrimination.

Example:

The ACA created health insurance marketplaces and expanded Medicaid.

Related Terms:

Obamacare
Marketplace

Obamacare

ACA

Common name for the Affordable Care Act.

Example:

Obamacare made health insurance accessible to millions of previously uninsured Americans.

Related Terms:

ACA
Healthcare Reform

Health Insurance Marketplace

ACA

Website where you shop for ACA-compliant insurance plans.

Example:

HealthCare.gov is the federal marketplace for most states.

Related Terms:

Exchange
HealthCare.gov

Exchange

ACA

Another term for the Health Insurance Marketplace.

Example:

State exchanges operate their own marketplaces.

Related Terms:

Marketplace
State-Based Exchange

Advance Premium Tax Credit (APTC)

ACA

Premium tax credit paid directly to your insurer to lower monthly premiums.

Example:

APTC reduces your premium payment each month instead of waiting for a tax refund.

Related Terms:

Premium Tax Credit
Subsidy

Subsidy

ACA

General term for financial assistance to help pay for insurance.

Example:

Subsidies include premium tax credits and cost-sharing reductions.

Related Terms:

Premium Tax Credit
Cost-Sharing Reduction

Medicaid Expansion

ACA

ACA provision allowing states to extend Medicaid to adults earning up to 138% FPL.

Example:

40 states have expanded Medicaid as of 2025.

Related Terms:

Medicaid
Coverage Gap

Coverage Gap

ACA

Income range where you earn too much for Medicaid but too little for subsidies in non-expansion states.

Example:

In non-expansion states, earning below 100% FPL creates a coverage gap.

Related Terms:

Medicaid Expansion
FPL

Individual Mandate

ACA

Previous federal requirement to have health insurance (penalty removed in 2019).

Example:

Some states still have their own individual mandates.

Related Terms:

Tax Penalty
Minimum Essential Coverage

Employer Mandate

ACA

ACA requirement for large employers to offer affordable coverage or pay penalties.

Example:

Employers with 50+ full-time employees must offer coverage.

Related Terms:

Applicable Large Employer
Affordable Coverage

Applicable Large Employer (ALE)

ACA

Employer with 50 or more full-time equivalent employees subject to ACA employer mandate.

Example:

ALEs must offer minimum essential coverage to avoid penalties.

Related Terms:

Employer Mandate
Full-Time Employee

Affordability (ACA)

ACA

Employer coverage costing no more than 9.12% of household income in 2025.

Example:

If employer coverage is unaffordable, you may qualify for marketplace subsidies.

Related Terms:

Employer Coverage
Premium Tax Credit

State-Based Exchange

ACA

State-run marketplace instead of using HealthCare.gov.

Example:

California (Covered California) and New York have state-based exchanges.

Related Terms:

Marketplace
Federal Exchange

Federal Exchange

ACA

HealthCare.gov marketplace used by states without their own exchanges.

Example:

Most states use the federal exchange.

Related Terms:

HealthCare.gov
Marketplace

State-Federal Partnership

ACA

Exchange model where states and federal government share marketplace operations.

Example:

Some states handle plan management while using HealthCare.gov for enrollment.

Related Terms:

Exchange
Marketplace

Income Verification

ACA

Process of confirming income for subsidy eligibility.

Example:

You'll need to provide tax returns or pay stubs for income verification.

Related Terms:

Subsidy
Documentation

Household Income

ACA

Modified Adjusted Gross Income (MAGI) used to determine subsidy eligibility.

Example:

Household income includes your AGI plus tax-exempt interest and excluded foreign income.

Related Terms:

MAGI
FPL

MAGI (Modified Adjusted Gross Income)

ACA

Income calculation used for ACA subsidy eligibility.

Example:

MAGI is your AGI from taxes plus certain exclusions and deductions added back.

Related Terms:

Household Income
AGI

Tax Reconciliation

ACA

Process of comparing actual income to estimated income and adjusting tax credits.

Example:

If you earned more than estimated, you may owe back some premium tax credits.

Related Terms:

APTC
Form 8962

Form 8962

ACA

IRS tax form for reconciling advance premium tax credits.

Example:

You must file Form 8962 if you received APTC during the year.

Related Terms:

APTC
Tax Reconciliation

Form 1095-A

ACA

Tax form showing your marketplace coverage and APTC amounts.

Example:

You need Form 1095-A to complete Form 8962 for taxes.

Related Terms:

APTC
Marketplace

Benchmark Plan

ACA

The second-lowest-cost Silver plan used to calculate premium tax credits.

Example:

Your subsidy is based on the benchmark plan even if you choose a different plan.

Related Terms:

Premium Tax Credit
Silver Plan

Second-Lowest Cost Silver Plan (SLCSP)

ACA

The benchmark plan for subsidy calculations.

Example:

SLCSP determines your maximum premium after subsidies.

Related Terms:

Benchmark Plan
Premium Tax Credit

Silver Loading

ACA

Strategy where insurers increase Silver plan premiums to fund CSRs, making other tiers cheaper with subsidies.

Example:

Silver loading can make Gold plans cost less than Silver after subsidies.

Related Terms:

Cost-Sharing Reduction
Premium Tax Credit

Enhanced Silver Plan

ACA

Silver plan with cost-sharing reductions that increases actuarial value.

Example:

CSR Silver plans can have 73%, 87%, or 94% actuarial value instead of standard 70%.

Related Terms:

Cost-Sharing Reduction
Silver Plan

Rate Review

ACA

ACA process requiring insurers to justify premium increases over 10%.

Example:

State insurance departments review and approve or deny rate increases.

Related Terms:

Premium
Medical Loss Ratio

Guaranteed Issue

ACA

ACA requirement that insurers must sell coverage to everyone regardless of health status.

Example:

Insurers cannot deny you coverage due to pre-existing conditions.

Related Terms:

Pre-existing Condition
Community Rating

Community Rating

ACA

ACA rule limiting premium variation to age, tobacco use, location, and family size.

Example:

Insurers cannot charge more based on health status or gender.

Related Terms:

Guaranteed Issue
Premium Rating

Rating Area

ACA

Geographic zone used for setting premiums.

Example:

Premiums vary by rating area based on local healthcare costs.

Related Terms:

Geographic Rating
Premium

Subsidy Cliff

ACA

Former income threshold (400% FPL) where subsidies abruptly ended.

Example:

The American Rescue Plan eliminated the subsidy cliff for 2021-2025.

Related Terms:

Premium Tax Credit
FPL

American Rescue Plan

ACA

2021 law that enhanced and expanded ACA subsidies.

Example:

ARP eliminated the subsidy cliff and increased subsidy amounts.

Related Terms:

Premium Tax Credit
Enhanced Subsidies

Inflation Reduction Act

ACA

2022 law that extended ARP subsidy enhancements through 2025.

Example:

IRA continued enhanced subsidies beyond their original 2022 expiration.

Related Terms:

American Rescue Plan
Premium Tax Credit

Navigators

ACA

Trained professionals who help consumers enroll in marketplace plans.

Example:

Navigators provide free, unbiased assistance with marketplace enrollment.

Related Terms:

Enrollment Assistance
Marketplace

Open Enrollment

Enrollment

The yearly period when you can enroll in, renew, or change health insurance plans.

Example:

Open enrollment for 2025 coverage runs from November 1 to January 15.

Related Terms:

Special Enrollment Period
Qualifying Life Event

Special Enrollment Period (SEP)

Enrollment

A time outside open enrollment when you can sign up for insurance due to a qualifying life event.

Example:

If you lose your job and health insurance, you can enroll during a 60-day special enrollment period.

Related Terms:

Qualifying Life Event
Open Enrollment

Qualifying Life Event (QLE)

Enrollment

Life changes that trigger a special enrollment period.

Example:

Getting married, having a baby, or losing other coverage are qualifying life events.

Related Terms:

Special Enrollment Period
Life Change

Effective Date

Enrollment

The date your insurance coverage begins.

Example:

If you enroll by the 15th of the month, coverage typically starts the 1st of the next month.

Related Terms:

Coverage Start Date
Enrollment

Grace Period

Enrollment

Time after your premium due date before coverage is terminated.

Example:

Most plans have a 30-day grace period for premium payment.

Related Terms:

Premium Payment
Termination

Continuous Coverage

Enrollment

Maintaining health insurance without gaps.

Example:

Continuous coverage prevents issues with pre-existing condition waiting periods in some states.

Related Terms:

Coverage Gap
Lapse

Coverage Lapse

Enrollment

A period when you don't have active health insurance.

Example:

Avoid coverage lapses to maintain continuous protection.

Related Terms:

Coverage Gap
Termination

Retroactive Coverage

Enrollment

Coverage that applies to dates before enrollment.

Example:

Some Medicaid programs offer retroactive coverage up to 3 months.

Related Terms:

Effective Date
Medicaid

Auto-Renewal

Enrollment

Automatic re-enrollment in your current plan for the next year.

Example:

If you don't actively choose a plan, you'll be auto-renewed.

Related Terms:

Re-enrollment
Passive Renewal

Passive Renewal

Enrollment

Another term for auto-renewal.

Example:

Passive renewal keeps your current plan, but premiums may change.

Related Terms:

Auto-Renewal
Re-enrollment

Plan Year

Enrollment

The 12-month period your plan is active.

Example:

Most marketplace plans run on calendar year (January-December).

Related Terms:

Coverage Period
Calendar Year

Termination

Enrollment

End of insurance coverage.

Example:

Coverage terminates if you don't pay premiums or voluntarily cancel.

Related Terms:

Cancellation
Coverage End

Voluntary Termination

Enrollment

Canceling your coverage by choice.

Example:

You might voluntarily terminate when switching to employer coverage.

Related Terms:

Cancellation
Special Enrollment

Involuntary Termination

Enrollment

Coverage ended by insurer for non-payment or fraud.

Example:

Involuntary termination can occur after the grace period ends.

Related Terms:

Termination
Non-Payment

Dependent

Enrollment

A person covered under someone else's plan, typically children or spouse.

Example:

Children can stay on parent's plans until age 26 under ACA.

Related Terms:

Family Coverage
Young Adult

Dependent Coverage to Age 26

Enrollment

ACA provision allowing young adults to stay on parent plans until 26.

Example:

Your child can remain on your plan even if married or employed.

Related Terms:

Young Adult
Dependent

COBRA

Enrollment

Continuation coverage allowing you to keep employer insurance after job loss.

Example:

COBRA lets you stay on employer plan for up to 18 months but you pay full cost.

Related Terms:

Job Loss
Continuation Coverage

Continuation Coverage

Enrollment

Temporary extension of coverage after qualifying event.

Example:

COBRA is the most common type of continuation coverage.

Related Terms:

COBRA
Temporary Coverage

Conversion

Enrollment

Changing group coverage to individual coverage.

Example:

Some employer plans allow conversion when you leave the company.

Related Terms:

COBRA
Individual Coverage

Waiting Period

Enrollment

Time between enrollment and when coverage becomes active.

Example:

Employer plans may have up to 90-day waiting periods for new employees.

Related Terms:

Effective Date
Employer Coverage

Eligibility Period

Enrollment

Timeframe when you can enroll in coverage.

Example:

New employees have a limited eligibility period to enroll in benefits.

Related Terms:

Enrollment Period
New Hire

Election Period

Enrollment

Time when you can choose or change benefits.

Example:

Annual election period is when employees select next year's benefits.

Related Terms:

Open Enrollment
Benefits Selection

Enrollment Deadline

Enrollment

Last day to enroll in coverage for a specific period.

Example:

Missing the enrollment deadline means waiting until next open enrollment.

Related Terms:

Open Enrollment
Coverage Start

Proof of Coverage

Enrollment

Documentation showing you have health insurance.

Example:

Keep your insurance card as proof of coverage.

Related Terms:

Insurance Card
Documentation

Insurance Card

Enrollment

Card showing your coverage information and identification numbers.

Example:

Bring your insurance card to doctor appointments.

Related Terms:

Proof of Coverage
Member ID

Member ID

Enrollment

Unique identifier for your insurance coverage.

Example:

Provide your member ID when scheduling medical appointments.

Related Terms:

Insurance Card
Policy Number

Policy Number

Enrollment

Unique number identifying your insurance policy.

Example:

Your policy number is on your insurance card and all documents.

Related Terms:

Member ID
Insurance Card

Subscriber

Enrollment

Primary policyholder on an insurance plan.

Example:

The subscriber is typically the employee or person who purchased the plan.

Related Terms:

Policyholder
Primary Insured

Beneficiary

Enrollment

Person who receives insurance benefits.

Example:

All covered family members are beneficiaries of the policy.

Related Terms:

Covered Person
Member

Life Event Documentation

Enrollment

Proof of qualifying event needed for special enrollment.

Example:

Marriage certificate, birth certificate, or job loss letter serve as life event documentation.

Related Terms:

Qualifying Life Event
Special Enrollment

Preventive Care

Medical

Healthcare services that prevent illness or detect health problems early, covered at 100% by ACA plans.

Example:

Annual checkups, mammograms, and flu shots are preventive care services covered with no copay.

Related Terms:

Essential Health Benefits
Well Visit

Primary Care Physician (PCP)

Medical

Your main doctor who coordinates your healthcare.

Example:

HMO plans require you to choose a PCP who refers you to specialists.

Related Terms:

Primary Care
Referral

Specialist

Medical

A doctor focusing on a specific area of medicine.

Example:

Cardiologists, dermatologists, and orthopedists are specialists.

Related Terms:

Referral
Specialty Care

Referral

Medical

Authorization from your PCP to see a specialist.

Example:

HMO plans typically require a referral before specialist visits.

Related Terms:

Primary Care Physician
Specialist

Emergency Care

Medical

Immediate medical attention for serious conditions.

Example:

Emergency care must be covered even if you go to an out-of-network hospital.

Related Terms:

Emergency Room
Urgent Care

Emergency Room (ER)

Medical

Hospital department providing immediate treatment for serious conditions.

Example:

ER copays are typically higher than regular doctor visits.

Related Terms:

Emergency Care
Hospital

Urgent Care

Medical

Walk-in clinic for non-life-threatening conditions needing prompt attention.

Example:

Urgent care is cheaper than ER for conditions like minor injuries or flu.

Related Terms:

Emergency Care
Walk-in Clinic

Inpatient Care

Medical

Medical treatment requiring overnight hospital stay.

Example:

Surgery with overnight recovery is inpatient care.

Related Terms:

Hospital Stay
Admission

Outpatient Care

Medical

Medical services that don't require overnight stay.

Example:

Lab tests, x-rays, and same-day procedures are outpatient care.

Related Terms:

Ambulatory Care
Same-Day

Ambulatory Care

Medical

Another term for outpatient care.

Example:

Ambulatory surgery centers perform procedures without admission.

Related Terms:

Outpatient Care
Clinic

Hospitalization

Medical

Admission to a hospital for treatment.

Example:

Your plan covers hospitalization after you meet your deductible.

Related Terms:

Inpatient Care
Admission

Observation Status

Medical

Hospital stay where you're monitored but not formally admitted.

Example:

Observation status may result in different cost-sharing than inpatient admission.

Related Terms:

Inpatient Care
Hospital

Discharge

Medical

Official release from hospital or medical facility.

Example:

You receive discharge instructions when leaving the hospital.

Related Terms:

Hospitalization
Follow-up Care

Follow-up Care

Medical

Medical appointments after initial treatment.

Example:

Post-surgery follow-up care monitors your recovery.

Related Terms:

Continuity of Care
Treatment

Diagnostic Services

Medical

Tests and procedures to identify medical conditions.

Example:

Blood tests, MRIs, and biopsies are diagnostic services.

Related Terms:

Laboratory Services
Imaging

Laboratory Services

Medical

Medical tests performed on blood, urine, or tissue samples.

Example:

Lab services include blood counts, cholesterol tests, and cultures.

Related Terms:

Diagnostic Services
Blood Work

Imaging

Medical

Medical tests that create pictures of body structures.

Example:

X-rays, CT scans, MRIs, and ultrasounds are imaging services.

Related Terms:

Diagnostic Services
Radiology

Prescription Drug

Medical

Medication requiring a doctor's authorization.

Example:

Your plan's formulary lists covered prescription drugs.

Related Terms:

Pharmacy Benefit
Formulary

Generic Drug

Medical

Lower-cost version of a brand-name medication.

Example:

Generic drugs have the same active ingredients as brand-name drugs.

Related Terms:

Brand-Name Drug
Formulary

Brand-Name Drug

Medical

Medication sold under a manufacturer's trademark.

Example:

Brand-name drugs typically cost more than generics.

Related Terms:

Generic Drug
Preferred Drug

Preferred Drug

Medical

Medications on lower formulary tiers with lower copays.

Example:

Using preferred drugs saves money on prescriptions.

Related Terms:

Formulary
Tier

Specialty Drug

Medical

High-cost medications for complex conditions.

Example:

Specialty drugs often require prior authorization and special handling.

Related Terms:

Prescription Drug
Tier

Mail-Order Pharmacy

Medical

Pharmacy service delivering prescriptions by mail.

Example:

Mail-order pharmacy often provides 90-day supplies at lower cost.

Related Terms:

Pharmacy Benefit
Prescription Drug

Maternity Care

Medical

Healthcare services for pregnancy, childbirth, and postpartum.

Example:

ACA plans must cover maternity care as an essential health benefit.

Related Terms:

Essential Health Benefits
Prenatal Care

Mental Health Services

Medical

Treatment for mental health conditions and substance abuse.

Example:

Mental health services must be covered equally to medical services under ACA.

Related Terms:

Behavioral Health
Substance Abuse

Substance Abuse Treatment

Medical

Services for addiction and substance use disorders.

Example:

Substance abuse treatment is an essential health benefit.

Related Terms:

Mental Health
Behavioral Health

Rehabilitation Services

Medical

Therapy to restore function after injury or illness.

Example:

Physical therapy, occupational therapy, and speech therapy are rehabilitation services.

Related Terms:

Physical Therapy
Essential Health Benefits

Physical Therapy

Medical

Treatment to improve movement and manage pain.

Example:

Physical therapy helps recovery after surgery or injury.

Related Terms:

Rehabilitation Services
Therapy

Occupational Therapy

Medical

Treatment to improve daily living and work skills.

Example:

Occupational therapy helps regain independence after injury.

Related Terms:

Rehabilitation Services
Therapy

Home Health Care

Medical

Medical services provided in your home.

Example:

Home health care includes nursing care, therapy, and medical equipment.

Related Terms:

Skilled Nursing
Post-Hospital Care

Skilled Nursing Facility

Medical

Facility providing 24-hour nursing care.

Example:

After hospital discharge, you may need temporary skilled nursing care.

Related Terms:

Nursing Home
Post-Hospital Care

Hospice Care

Medical

End-of-life care focusing on comfort.

Example:

Hospice care provides medical, emotional, and spiritual support.

Related Terms:

Palliative Care
Terminal Illness

Palliative Care

Medical

Specialized care for serious illness focusing on symptom relief.

Example:

Palliative care improves quality of life alongside curative treatment.

Related Terms:

Hospice Care
Chronic Illness

Preventive Screening

Medical

Tests to detect diseases early.

Example:

Colonoscopies, mammograms, and diabetes screenings are covered preventive services.

Related Terms:

Preventive Care
Early Detection

Immunization

Medical

Vaccine to prevent disease.

Example:

Flu shots, COVID vaccines, and childhood immunizations are covered preventive care.

Related Terms:

Vaccination
Preventive Care

Well Visit

Medical

Annual checkup for preventive care.

Example:

Well visits are covered at 100% with no copay under ACA.

Related Terms:

Preventive Care
Annual Physical

Chronic Condition

Medical

Long-lasting health condition requiring ongoing management.

Example:

Diabetes, heart disease, and asthma are chronic conditions.

Related Terms:

Chronic Disease Management
Ongoing Care

Acute Care

Medical

Short-term treatment for sudden illness or injury.

Example:

Emergency room visits and urgent care are acute care services.

Related Terms:

Emergency Care
Short-Term

Elective Surgery

Medical

Non-emergency surgical procedure.

Example:

Hip replacement and cataract surgery are elective procedures.

Related Terms:

Surgery
Planned Procedure

Cosmetic Surgery

Medical

Surgery to improve appearance, typically not covered.

Example:

Cosmetic procedures like facelifts are usually excluded from coverage.

Related Terms:

Exclusions
Elective Surgery

Ready to Find Your Perfect Plan?

Now that you understand the terms, check your eligibility and see plans available in your area.