Glossary

Insurance words should not hide the decision.

Search common coverage, billing, and appeal terms in plain language.

Understandcoverage & costs Locatetrusted local help Advocatefor better systems
Allowed amount

The plan-recognized amount used to calculate payment and cost sharing.

Appeal

A request for a health plan or program to reconsider an adverse decision.

Balance billing

Billing a patient for the difference between a provider charge and the amount paid or allowed, when permitted.

Claim

A request for payment submitted to a health plan after a service or item.

Coinsurance

A percentage of the allowed amount that a member may owe.

Copay

A fixed amount a member may owe for a covered service or prescription.

Deductible

An amount a member may need to pay before plan cost sharing begins for certain services.

Denial

A decision not to cover or pay for a requested service, item, medication, or claim.

EOB

Explanation of Benefits; a statement showing how a plan processed a claim. It is usually not itself a bill.

Evidence of Coverage

A detailed document explaining a plan's benefits, exclusions, costs, and procedures.

External review

Independent review of certain plan denials after required internal steps.

Formulary

A health plan's list of covered prescription drugs and related rules.

Good faith estimate

An advance estimate that uninsured or self-pay patients can often request for scheduled care.

Grievance

A complaint about a plan, service, access issue, or quality matter; definitions vary.

HMO

A plan model that commonly emphasizes network care and primary-care coordination.

In network

A provider or facility contracted with the specific health plan.

Medigap

Private Medicare Supplement insurance designed to cover certain Original Medicare cost sharing.

Network

The clinicians, facilities, pharmacies, and suppliers contracted with a plan.

Out-of-pocket maximum

The annual limit on certain covered, in-network cost sharing; premiums and many other charges may not count.

Premium

The regular payment required to maintain coverage.

Prior authorization

Advance plan review required for certain services, medications, or items.

PPO

A plan model that commonly permits out-of-network use at higher cost.

Referral

A direction or authorization from one clinician, often primary care, to another provider.

Special enrollment period

A limited enrollment window triggered by qualifying circumstances.

Summary of Benefits and Coverage

A standardized overview designed to help consumers compare health plans.

Urgent appeal

A faster review pathway that may apply when delay could seriously jeopardize health or recovery.