Page 23 - Open Enrollment Guide Sample
P. 23
23
Commonly Used Terms
Annual Enrollment
A time period at the end of the year when you can enroll, change or
cancel or make changes to your Medical, Dental, Vision, Spending
Accounts, and Supplemental Life insurance coverages, if eligible. The
effective date is January 1.
Before Tax (Pre-tax)
You do not pay payroll taxes on the money you contribute to the 401(k)
Plan. Instead, taxes are paid when you withdraw money from the plan.
Premiums for Medical, Dental, Vision, Spending Accounts, and Team
member Supplemental Life are paid before taxes are deducted, reducing
your taxable income.
Beneficiary
Person named by you in an insurance policy or retirement plan to receive
beneits provided by the plan if you die.
COBRA
Consolidated Omnibus Budget Reconciliation Act of 1985. Provides you
and your dependents the option to pay for continued medical and dental
coverage for a speciied period of time after you leave the company or no
longer meet the eligibility requirements of the plan.
Coinsurance
The insured person and the company share in the payment of claims
following a speciied ratio (e.g. 90%/10%: Company pays 90%, insured
person pays 10%). This applies after the deductible has been met.
Copay
The payment due at the time of a doctor’s visit (e.g., $20) or when illing a
prescription.
Deductible
The amount of expenses that must be paid by you for medical and dental
services before the insurance plan will pay.
2016 Open Enrollment
Commonly Used Terms
Annual Enrollment
A time period at the end of the year when you can enroll, change or
cancel or make changes to your Medical, Dental, Vision, Spending
Accounts, and Supplemental Life insurance coverages, if eligible. The
effective date is January 1.
Before Tax (Pre-tax)
You do not pay payroll taxes on the money you contribute to the 401(k)
Plan. Instead, taxes are paid when you withdraw money from the plan.
Premiums for Medical, Dental, Vision, Spending Accounts, and Team
member Supplemental Life are paid before taxes are deducted, reducing
your taxable income.
Beneficiary
Person named by you in an insurance policy or retirement plan to receive
beneits provided by the plan if you die.
COBRA
Consolidated Omnibus Budget Reconciliation Act of 1985. Provides you
and your dependents the option to pay for continued medical and dental
coverage for a speciied period of time after you leave the company or no
longer meet the eligibility requirements of the plan.
Coinsurance
The insured person and the company share in the payment of claims
following a speciied ratio (e.g. 90%/10%: Company pays 90%, insured
person pays 10%). This applies after the deductible has been met.
Copay
The payment due at the time of a doctor’s visit (e.g., $20) or when illing a
prescription.
Deductible
The amount of expenses that must be paid by you for medical and dental
services before the insurance plan will pay.
2016 Open Enrollment
