Glossary

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

24-hour coverage- An employer’s health plan that merges group health insurance, disability plans, and workers' compensation programs creating a single health benefit plan that offers employee coverage 24 hours per day.
24-hour managed care- Applying managed care principles to 24-hour coverage plans.

A
Access- The capability to afford medical coverage in a timely manner.
Agent- A representative of an insurer who sells managed care contracts.Arbitration The act of disputing parties submitting their argument to a neutral third party for resolution. Assets- The valuable items that a person or company owns.At-risk- Used to explain the insurance risk a health care organization faces.

B
Benefits- Provided by a health insurance policy, benefits are the services the insured person receives.
Behavioral Healthcare- Includes substance abuse as well as mental health services.
Broker- Considered an agent of the buyer; a broker sells health plans.
Budgeting- A financial plan used by an organization to reach its goals and objectives.
Business Integration- Combining a number of business functions into one unit.

C
Calendar Year- Begins on January 1st and ends on December 31st.
Catastrophic Health Insurance- Consists of a high deductible, Catastrophic Health Insurance covers expenses not included with basic coverage.
Claim- Submitted by the insurer or health care provider, a claim is the bill for medical services.
COBRA: “Consolidated Omnibus Budget Reconciliation Act” of 1985. COBRA ensures that workers have the option of continuing their health care benefits after their employment has ended.
Co-insurance- The percentage amount that a health plan will pay for services.
Co-payment- The dollar amount the insured will pay for services.

D
Deductible- The dollar amount paid by the insured before the insurance pays.
Dental Health Maintenance Organization (DHMO)- Dental services provided by a network to paying members.
Dental Point of Service (dental POS) Option- Gives the policyholder the option of choosing an in network or out of network dentist.
Discount Plans- Discount plans are not insurance buy discount rates provided for its members.
Disease Management- Provides cost effective preventive health care services for at risk groups.

E
Early and Periodic Screening, Diagnostic, and Treatment (EPSDT) Services- Provides medical and dental services for those on Medicaid who are under the age of 21.
Electronic Data Interchange (EDI)- The transfer of data between organizations using computers.
Electronic Medical Record (EMR)- A computer-based record that includes clinical and other pertinent information regarding the patient.
Employee Benefits Consultant- An expert who provides advice to employees regarding their health care plan.
Employee Retirement Income Security Act (ERISA)- Law that sets standards for pension plan holders and allows them disclosure to plan provisions and funding options.

F
Federal Employee Health Benefits Program (FEHBP)- A health insurance plan for retirees, federal employees, and their survivors and dependents.
Federal Trade Commission Act- Act which established the FTC and sets forth standards for the regulation of business practices.
Fee Schedule- Fee Allowance, Capped Fee, or Fee Maximum.
Fee-for-Service (FFS) Payment System- A system where the insurer agrees to reimburse the group member for services rendered.
Formulary- Drug listing used by providers for prescribing medication.

G
Generic Substitution- A generic equivalent of a drug listed on the formulary. Prescriptions may be substituted without the approval of a physician. Group Health Insurance- Health insurance written for a number of people that was written under a master policy.
Group Market- A group of people that enter into a contract where the MCO provides healthcare services to the market segment.
Group Model HMO- Group Practice Model HMO; An HMO that contracts with physicians who are employees of the practice.

H
Health Care Quality Improvement Act (HCQIA)- Federal act passed in 1996 that offers liability protection for HMOs, physicians, and hospitals ho agree to peer review.
Health Care Quality Improvement Program (HCQIP)- Program designed to improve the degree of care provided to Medicare recipients.
Health Data Network or Health Information Network- Computer network of medical information.Health Insurance Portability and Accountability Act (HIPAA)- Federal law passed in 1996 that protects the privacy of health related information.
Health Insuring Organization (HIO)- Organization contracted with a Medicaid agency.
Health Maintenance Organization (HMO)- Health care services provided by an organization for a prepaid fee.

I
Immunization Programs- Programs initiated to prevent childhood disease through the use of vaccines.
Incurred But Not Reported (IBNR) Claims- Claims which remain unpaid because they have not yet been reported or submitted to the insuring company.
Indemnity Wraparound Policy- A product offered by an HMO due to a prearranged agreement with the insurance company.
Independent Agents- Agents that represent multiple insurers.
Independent External Review- Third party review that has no affiliation with the insurance company.
Independent Practice Association (IPA)- Physicians that contract with a Managed Care Organization to provide health services to its members.

J
Joint Venture- Combination of organizations to share services and meet a common objective.
Justice/Equity- A principle that states that Managed Care Organizations will distribute services and benefits fairly to its members.

K
Key-Person Insurance- An insurance plan that protects a business from the loss or death of a key person within the company.

L
Large Group- Health coverage that is sponsored for a large group of individuals.
Large Local Groups- Contracts between local groups for health care services as opposed to national contracts.
Length of Stay (LOS)- Determined from the day of admission to the day of discharge in a hospital or other health care facility.
Length-of-Stay Guidelines- The guidelines that determine the length of stay based upon a patient’s condition, recommended treatment, and services needed for recovery.

M
Mail-Order Pharmacy Programs- Programs that allow members to order pharmaceuticals through mail order and at discount prices.
Managed Behavioral Health Organization (MBHO)- Managed care for behavioral health services.
Managed Care- Concepts or techniques used to manage accessibility, cost, and quality of health care.
Managed Dental Care- A dental plan that provides benefits.
Managed Indemnity Plans- Like indemnity plans, these health insurance plans include managed care reviews.

Medical Director- The chief medical officer responsible for the quality of services provided by the health care plan.
Medical Error- Mistake that occurs when a procedure or treatment is misapplied.
Medical Foundation- Non profit organization created by a health care facility that controls and hires physician practices.

N
National Practitioner Data Bank (NPDB)- Federal based database consisting of information regarding physicians and health care practitioners involved in malpractice claims and other disciplinary actions.
Network- The health care professionals contracted by the Managed Care Organization to provide health care services.Network Model HMO- Group of physicians contracted by an HMO.

O
Open Access- Allows members to visit specialists whether in or out of the network without needing a referral.
Open PHO- Physician hospital organization available to eligible medical staff. Outside Directors- Directors of a company’s board that have no other position within the company.
Outsourcing- Hiring outside of the network for a Managed Care Organization.

P
Parent Company- The company that owns another company.
Patient Perception- Outcome measurement that determines how a patient feels after treatment. Physician-Hospital Organization (PHO)- Joint venture between physicians and hospitals for negotiating contracts.
Plan Funding- Used by an employer to pay for the medical benefits and administrative fees for the plan.

Q
Quality- The degrees in which members’ needs are met.
Quality Improvement System for Managed Care (QISMC)- Program designed to improve the health services provided to Medicaid and Medicare recipients.
Quality Management (QM)- The process used to determine the quality of health care provided by a Managed Care Organization to its members.
Quality Management Committee- Oversees the quality of the Managed Care Organization.

R
Rating- Process used to calculate the premium price. Factors include the cost of medical services, marketability, and competitiveness of the Managed Care Organizations health plan.
Reactive Change- Unexpected change that can be controlled.
Rebate- Lowered price on pharmaceuticals provided by the manufacturer.
Risk-Adjustment- Case-Mix adjustment. Adjusting outcomes measures due to the patient’s risk factors.

S
Screening Programs- Used to determine if a member has a health problem, even if they are currently without symptoms.
Section 1115 waivers- Waivers that allow Medicaid recipients to receive comprehensive services.
Section 1915(b) waivers- Waivers that allow Medicaid recipients access to an HMO.
Segments- Groups of members in a market.
Self-Funded Plan- Self-Insured Plan. An employer or group sponsor is financially responsible for the plan’s expenses and member’s claims.Site Appropriateness Listings- Resource for the review of procedures and their use.
Small Group- A small group typically consists of 2-99 members of a group-sponsored plan.
Specialist- Healthcare professional who majors in one specific area, branch, or types of disease.

T
Termination Provision- Determines how the parties may end the contract.
Termination without Cause- Provision that allows the provider or Managed Care Organization the ability to terminate the contract without showing cause.
Turnaround Time- Time required to complete a member initiated transaction.
Two-Tier Co-payment Structure- System where a member pays one co-payment fee for a generic pharmaceutical and a higher co-payment fee for a name brand pharmaceutical.
Tying Arrangements- An illegal business practice that occurs when an organization conditions the sale of one product or service on the sale of other products or services.

U
Underwriting Impairments- Individual’s above normal risks that are the result of certain factors.
Utilization Guidelines- Review that ensures healthcare services are effective and appropriate.
Utilization Management (UM)- The management of medical services to ensure that each patient receives high quality care.
Utilization Management Committee- Committee that handles the Managed Care Organization’s reviews, protocols, and appropriateness of medical services.
Utilization Review (UR)- The process of evaluating health care services and treatment provided for a patient.

V
Variances- Differences that occur from determining actual results from those that were expected.

W
Women's Health and Cancer Rights Act (WHCRA)- Law that ensures women who suffer from cancer will have access to coverage for reconstructive surgery following mastectomy.
Workers' Compensation- Insurance program that ensures employees will recover wages lost due to work related injury, illness, or disease.
Workers' Compensation Indemnity Benefits- Benefits that supplement a worker’s wages due to injury or illness.

Z
Y
Z