How about PDL?
And do you know what an HSA is?“Home shopping association?”
When UHC-TV cameramen asked sidewalk volunteers to define some health care acronyms, people got pretty creative with their answers.
You may recall that when I blogged a few weeks ago about some of the basic health insurance terms we asked people about on UHC-TV, our volunteers were able to give pretty good answers for terms like “premiums” and “copays.” But when we started asking people to explain some frequently used but less known terms, most people couldn’t quite come up with the right answer, although they did show off their sense of humor.
So whether you’re sitting down to choose your health plan for the upcoming year, are trying to better understand your current plan, or just want to brush up your knowledge of the health care options available to you, here are some terms you should know:
- Explanation of Benefits (EOB): The EOB is a statement that can be sent to you electronically or in the mail. It breaks down the exact benefits provided, the reimbursement amounts allowed, deductibles, coinsurance or other adjustments taken as well as the net amount paid.
- Prescription Drug List (PDL): Your EOB should include a list of prescription drugs covered under your plan and how much you pay for them. Because generic drugs work just as well as prescription drugs but usually cost less, the PDL may assign different payment amounts to generic and brand-name medications.
- Health Reimbursement Account (HRA): An HRA is an account that may be set up by your employer to which your employer contributes to help you cover medical expenses you would normally cover yourself. Employers decide whether to let the remaining balance carry over to the next year.
- Health Savings Account (HSA): HSAs are typically paired with a high-deductible health plan and allow you or your employer to contribute pre-tax dollars from your paycheck into an account to pay for qualified medical expenses. The funds are owned by you, so you can decide to roll them over from year to year and keep the account even if you change employers or benefits. If your employer does not offer an HSA, you can set one up on your own.
- Flexible Savings Account (FSA): Employers may set up flexible savings accounts to allow employees to contribute pre-tax dollars from their paychecks each year to pay for medical expenses not covered by their plan, such as deductibles, copays, and coinsurance. Unused funds do not carry over from year to year, so it’s important to plan carefully.
So check out UHCTV.com to learn more about health care terms, watch videos with tips on healthy lifestyles, see answers to common questions on Medicare, hear advice from medical experts, and even have a few laughs.