Health Maintenance Organization (HMO): Health Maintenance Organizations represent “pre-paid” or “capitated” insurance plans in which individuals or their employers pay a fixed monthly fee for services, instead of a separate charge for each visit or service. The monthly fees remain the same, regardless of types or levels of services provided, Services are provided by physicians who are employed by, or under contract with, the HMO. HMOs vary in design. Depending on the type of the HMO, services may be provided in a central facility, or in a physician’s own office.

Health Savings Account (HSA): A health savings account (HSA) is a tax-favored savings account created for the purpose of paying medical expenses.

High deductible Plan: High deductible health insurance allows you to save money on your premiums while taking the responsibility of covering minor or routine out of pocket medical expenses if they come up.

• HSA money is yours to keep- unlike a Flexible Spending Account, unused money in your HSA isn’t forfeited at the end of the year; it continues to grow, tax-deferred.
• Tax-deductible Contributions to the HSA are 100% deductible (up to the legal limit) – just like an IRA.
• Tax-deferred interest earnings accumulate tax-deferred, and if used to pay qualified medical expenses, are tax-free.
• Tax-free withdrawals to pay qualified medical expenses are never taxed.

Point of Service (POS): A health plan that allows Members to choose to receive services from a contracted  or non-contracted network provider.  Usually the Member pays higher costs when they use an out of network provider.

Preferred Provider Organization (PPO): You or your employer receive discounted rates if you use doctors from a pre-selected group. If you use a physician outside the PPO plan, you must pay more for the medical care.

Short-Term Medical: Temporary coverage for an individual for a short period of time, usually from 30 days to six months.