Glossary

Deductible

A set amount that you must pay for your medical services before the health plan starts to pay.

Defined Contribution Plan

A pension, health or other benefits plan typically provided by an employer under which the employer gives each employee a fixed amount of money, or "contribution." When provided for health benefits, this amount can be used either to purchase health insurance or directly to pay for the cost of health services. There are distinct differences among the types of defined contribution plans offered from employer to employer. You should check with your employer for details if they offer these plans.

Dependent

A child or spouse who gets health insurance coverage through your plan. Often times there are limits for enrolling a new dependent in a health plan, so check with your health plan provider if you are getting married, having a new baby or adopting a child. Also keep in mind that your child may no longer be covered under your health plan when he or she reaches a certain age.

Dependent Care Reimbursement Account

These accounts let you set aside pre-tax dollars to pay for eligible childcare expenses. Because the reimbursement account contributions are not taxed, you decrease your taxable income while increasing your available cash. Funds do not roll over from year to year, are not portable and do not accrue interest.

Direct Access

Also called "open access." A term used to describe certain health benefits plans under which an individual may go directly to any participating provider in the health plan's network without a referral from a primary care physician.

Disability

A physical or mental impairment that substantially limits one or more of the major life activities of an individual.

Disease Management

A program for identifying individuals with a specific illness or disease (usually chronic in nature) and using an integrated health care approach to help prevent recurrence of symptoms, maintain a high quality of life and prevent future need for medical care. Individuals enrolled in a disease management program may receive educational information, supplies and follow-up contact with medical professionals to help them manage their illness.

Drug Formulary

See Formulary

Durable Medical Equipment

A piece of medical equipment, such as a wheelchair, that can be used repeatedly, primarily serves a medical purpose, is generally not useful to a person in the absence of an illness or injury, and is appropriate for use at home. Other examples include hospital beds and oxygen equipment. It is important to note that some health benefits plans do not cover durable medical equipment as part of the basic plan. You should understand whether your benefits plan covers DME and, if not, evaluate whether you should purchase separate coverage.