Benefits Terms Decoded

Benefits language can feel like its own vocabulary, filled with abbreviations and terms that rarely come up outside of enrollment season. The following glossary explains the terms most commonly encountered when reviewing or selecting benefits, organized into four groups covering:

• Cost-Sharing Basics: 
  • • Premium
    • Deductible
    • Copayment (Copay)
    • Coinsurance
    • Out-of-Pocket Maximum
• Savings Accounts and Contributions:
  • • HSA (Health Savings Account)
    • Health FSA (Flexible Spending Account)
    • Dependent Care FSA
    • HRA (Health Reimbursement Arrangement)
    • Contribution
• Coverage and Access:
  • • Network
    • Formulary
    • Coordination of Benefits
    • Consolidated Omnibus Budget Reconciliation Act (COBRA)
    • Prior Authorization
• Life Events and Documentation:
  • • Qualifying Life Event
    • Beneficiary
    • Dependent
    • Explanation of Benefits (EOB)
    • Waiting Period

Reviewing these 20 terms ahead of time can make enrollment decisions easier to navigate.