There are so many different terms that thrown around and I found this great glossary of terms that I thought I would share with you.
Affordable Care Act: A set of health care reforms passed by Congress and signed into law by President Barack Obama in March 2010. The foal of this law, which is more formally called the Patient Protection and Affordable Care Act and more informally nicknamed Obamacare, was to make affordable quality health care accessible to more Americans. It also aims to give both the insured and uninsured new patient protections to make coverage more fair and easier to understand.
COBRA: Stands for Consolidated Omnibus Budget Reconciliation Act. It allows workers the right to stay on their employer’s health insurance plan for a certain period of time, though they may be required to pay the entire cost of their coverage.
Deductible: A specific amount of money that you must pay before your health insurance will start paying on a health-care claim you have made. This is an out-of-pocket cost. Typically, if you have an HMO, it does not have a deductible (but the trade-off is you are limited to doctors/care providers within that HMO’s “network”).
“Donut Hole”: In Medicare Part D, which covers prescription drugs, most plans have a coverage gap, which is often referred to as the “donut hole”, where coverage is cut off after spending a certain amount and then starts up again after you’ve reached a new threshold of cost. The Affordable Care Act eliminates this gap in coverage by 2020.
Employer-based plans: Insurance plans that are provided by your employer and partially covered by them. This is the type of insurance plan most Americans have.
Employer Mandate: The requirement that businesses with more than 50 full-time employees must offer health insurance to their employees and their dependents under the age of 26, starting in 2015.
Health Insurance Marketplace: The online marketplace where you can search for and purchase health insurance. Also called Health Care Exchange, HIX, Obamacare Exchanges, and Health Benefits Exchange. It’s available at Healthcare.gov
Healthy Kids: A free health insurance plan for children under age 19 and pregnant women. Income requirements do apply.
Individual Mandate: The requirement that all Americans have health insurance in 2014. Those who do not comply face a fine (Some exceptions apply, i.e. Members of federally recognized tribes and others who are eligible for Indian Health Services).
Medicaid: Federal Health care program provided to people whose household income below 133 % of the federal poverty level (Not all states expanded Medicaid, but Michigan did).
Medicare: Federal health care program provided to those age 65 or over and younger people with disabilities.
Medicare Advantage: Medicare benefits provided by a private insurance company.
MIChild: a low-cost health insurance plan for children under age 19. Income requirements do apply.
Minimum essential coverage: The level of health care coverage that all Americans are required to have in 2014 or pay a penalty (some exceptions apply)
Out-of-network: A health care provider with whom your insurance company has not negotiated a rate of payment. See a doctor “out-of-network” can cost you more than seeing a doctor “in-network”.
Out-of-pocket: Expenses you have to pay yourself, above and beyond your insurance premiums. Typically includes copays and deductibles.
Pre-existing condition: A health issue that you already had that would sometimes disqualify you from getting insurance, or would cause your premiums to be increased. Under the new health care reform, insurance companies can no longer discriminate against those with pre-existing conditions or levy additional fees.
Premium: The rate you are charged for having active insurance. It is influenced by various factors and may be paid annually or in smaller installments over the year.
Primary Care Provider: A doctor, nurse practitioner or physician assistant who is the primary person you go to about your health care and is your go-to medical advisor.
Subsidies:Tax credits to help those who earn less than 400% of the federal poverty level buy insurance
Thank you to Health Care Reform + You Magazine for these definitions