Page 26 - CPSS Benefit Guide Class 3 Employee

Glossary

Brand preferred drugs – A drug with a patent and In-network – A designated list of health care providers
trademark name that is considered “preferred” because it is (doctors, dentists, etc.) with whom the health insurance
appropriate to use for medical purposes and is usually less provider has negotiated special rates. Using in-network
expensive than other brand-name options. providers lowers the cost of services for you and the
Brand non-preferred drugs – A drug with a patent and company.
trademark name. This type of drug is “not preferred” andis Inpatient – Services provided to an individual during an
usually more expensive than alternative generic and brand overnight hospital stay.
preferred drugs. Mail Order Pharmacy –Mail order pharmacies
Calendar Year Maximum – The maximum benefit generally provide a 90-day supply of a prescription
amount paid each year for each family member enrolled in medication for the same cost as a 60-day supply at a
the dental plan. retail pharmacy. Plus, mail order pharmacies offer the
Coinsurance –The sharing of cost between you and convenience of shipping directly to your door.
the plan. For example, 80 percent coinsurance means Out-of-network –Health care providers that are not in
the plan covers 80 percent of the cost of service after a the plan’s network and who have not negotiated
deductible is met. You will be responsible for the discounted rates. The cost of services provided by out-
remaining 20 percent of the cost. of-network providers is much higher for you and the
Copay – A fixed amount (for example $15) you pay for a company. Additional deductibles and higher
covered health care service, usually when you receive the coinsurance will apply.
service. The amount can vary by the type of covered Out-of-pocket maximum – The maximum amount you
health care service. and your family must pay for eligible expenses each plan
Deductible – The amount you have to pay for covered year. Once your expenses reach the out-of-pocket
services before your health plan begins to pay. maximum, the plan pays benefits at 100% of eligible
Elimination Period – The time period between the expenses for the remainder of the year. Your annual
beginning of an injury or illness and receiving benefit deductible is included in your out-of-pocket maximum.
payments from the insurer. Outpatient –Services provided to an individual at a
Generic drugs –A drugthat offers equivalent uses, doses, hospital facility without an overnight hospital stay.
strength, quality and performance as a brand-name drug, but Primary Care Provider (PCP) – A doctor (generally a
is not trademarked. family practitioner, internist or pediatrician) who provides
Health Savings Account (HSA) –An HSA is a personal ongoing medical care. A primary care physician treats a
health care account for those enrolled in a High Deductible wide variety of health-related conditions.
Health Plan (HDHP). You may use your HSA to pay for Reasonable & Customary Charges (R&C) – Prevailing
qualified medical expenses such as doctor’s office visits, market rates for services provided by health care
hospital care, prescription drugs, dental care, and vision professionals within a certain area for certain
care. You can use the money in your HSA to pay for procedures. Reasonable and Customary rates may
qualified medical expenses now, or in the future, for your apply to out-of-network charges.
expenses and those of your spouse and dependents, even Specialist – A provider who has specialized training in
if they are not covered by the HDHP. a particular branch of medicine (e.g., a surgeon,
High Deductible Health Plan (HDHP) – A qualified High cardiologist or neurologist).
Deductible Health Plan (HDHP) is defined by the Internal Specialty drugs – A drug that requires special handling,
Revenue Service (IRS) as a plan with a minimum annual administration or monitoring. Most can only be filled by a
deductible and a maximum out-of-pocket limit. These specialty pharmacy and have additional required
minimums and maximums are determined annually and approvals.
are subject to change.

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