Glossary of Terms
Active Employee – is an Employee who is on the regular payroll of the Employer and who is scheduled to perform the duties of his or her job with the Employer on a full-time basis.
Ambulatory Surgical Center – is a licensed facility that is used mainly for performing outpatient surgery, has a staff of Physicians, has continuous Physician and nursing care by registered nurses (R.N.s) and does not provide for overnight stays.
Baseline– shall mean the initial test results to which the results in future years will be compared in order to detect abnormalities.
Benefit Administrator – is appointed by the Plan Administrator to administer payment of claims, customer service functions, and medical review for the Plan.
Birthing Center – means any freestanding health facility, place, professional office or institution which is not a Hospital or in a Hospital, where births occur in a home-like atmosphere. This facility must be licensed and operated in accordance with the laws pertaining to Birthing Centers in the jurisdiction where the facility is located. The Birthing Center must provide facilities for obstetrical delivery and short-term recovery after delivery; provide care under the full-time supervision of a Physician and either a registered nurse (R.N.) or a licensed nurse-midwife; and have a written agreement with a Hospital in the same locality for immediate acceptance of patients who develop complications or require pre- or post-delivery confinement.
Calendar Year – means January 1st through December 31st of the same year.
COBRA– means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.
Coordination of Benefits – means when a Covered Person has two or more insurance plans, including this Plan, then the plans will coordinate benefits when a claim is received.
Cosmetic Dentistry– means unnecessary dental procedures.
Covered Person– is an Employee or Dependent who is covered under this Plan.
Custodial Care– is care (including room and board needed to provide that care) that is given principally for personal hygiene or for assistance in daily activities and can, according to generally accepted medical standards, be performed by persons who have no medical training. Examples of Custodial Care are help in walking and getting out of bed; assistance in bathing, dressing, feeding; or supervision over medication which could normally be self-administered.
Durable Medical Equipment– means equipment which (a) can withstand repeated use, (b) is primarily and customarily used to serve a medical purpose, (c) generally is not useful by a person in the absence of an Illness or injury and (d) is appropriate for use in the home.
Employee – means a person who is an Active, regular Employee of the Employer, regularly scheduled to work for the Employer in an Employee/Employer relationship.
Enrollment Date – is the first day of coverage or, if there is a waiting period, the first day of the waiting period.
ERISA– is the Employee Retirement Income Security Act of 1974, as amended.
Family Unit– is the covered Employee and the family members who are covered as Dependents under the Plan.
Generic Drug – means a Prescription Drug, which has the equivalency of the brand name drug with the same use and metabolic disintegration. This Plan will consider as a Generic Drug any Food and Drug Administration approved generic pharmaceutical dispensed according to the professional standards of a licensed pharmacist and clearly designated by the pharmacist as being generic.
Genetic Information – means information about genes, gene products and inherited characteristics that may derive from an individual or a family member. This includes information regarding carrier status and information derived from laboratory tests that identify mutations in specific genes or chromosomes, physical medical examinations, family histories and direct analysis of genes or chromosomes.
Home Health Care Agency – is an organization that meets all of these tests: its main function is to provide Home Health Care Services and Supplies; it is federally certified as a Home Health Care Agency; and it is licensed by the state in which it is located, if licensing is required.
Home Health Care Plan– must meet these tests: it must be a formal written plan made by the patient’s attending Physician which is reviewed at least every 30 days; it must state the diagnosis; it must certify that the Home Health Care is in place of Hospital confinement; and it must specify the type and extent of Home Health Care required for the treatment of the patient.
Home Health Care Service and Supplies– include: part-time or intermittent nursing care by or under the supervision of a registered nurse (R.N.); part-time or intermittent home health aide services provided through a Home Health Care Agency (this does not include general housekeeping services); physical, occupational and speech therapy; medical supplies; and laboratory services by or on behalf of the Hospital.
Hospice Agency– is an organization where its main function is to provide Hospice Care Services and Supplies and it is licensed by the state in which it is located, if licensing is required.
Hospice Care Plan– is a plan of terminal patient care that is established and conducted by a Hospice Agency and supervised by a Physician.
Hospice Care Services and Supplies– are those provided through a Hospice Agency and under a Hospice Care Plan and include inpatient care in a Hospice Unit or other licensed facility, home care, and family counseling during the bereavement period.
Hospice Unit– is a facility or separate Hospital Unit that provides treatment under a Hospice Care Plan and admits at least two unrelated persons who are expected to die within six months.
Hospital– is an institution which is engaged primarily in providing medical care and treatment of sick and injured persons on an inpatient basis at the patient’s expense and which fully meets these tests: it is accredited as a Hospital by the Joint Commission on Accreditation of Healthcare Organizations; it is approved by Medicare as a Hospital; it maintains diagnostic and therapeutic facilities on the premises for surgical and medical diagnosis and treatment of sick and injured persons by or under the supervision of a staff of Physicians; it continuously provides on the premises 24-hour a day nursing services by or under the supervision of registered nurses (R.N.s); and it is operated continuously with organized facilities for operative surgery on the premises.
The definition of Hospital shall be expanded to include the following:
- A facility operating legally as a psychiatric Hospital or residential treatment facility for mental health and licensed as such by the state in which the facility operates.
- A facility operating primarily for the treatment of Substance Abuse if it meets these tests: maintains permanent and full-time facilities for bed care and full-time confinement of at least 15 resident patients; has a Physician in regular attendance; continuously provides 24-hour a day nursing service by a registered nurse (R.N.); has a full-time psychiatrist or psychologist on the staff; and is primarily engaged in providing diagnostic and therapeutic services and facilities for treatment of Substance Abuse.
Injury– means an accidental physical injury to the body caused by unexpected external means.
Intensive Care Unit – is defined as a separate, clearly designated service area which is maintained within a Hospital solely for the care and treatment of patients who are critically ill. This also includes what is referred to as a coronary care unit or an acute care unit. It has: facilities for special nursing care not available in regular rooms and wards of the Hospital; special life saving equipment which is immediately available at all times; at least two beds for the accommodation of the critically ill; and at least one registered nurse (R.N.) in continuous and constant attendance 24-hours a day.
Late Enrollee– means a Plan Participant who enrolls under the Plan other than during the first 31-day period in which the individual is eligible to enroll under the Plan or during a Special Enrollment Period.
Legal Guardian– means a person recognized by a court of law as having the duty of taking care of the person and managing the property and rights of a minor child.
Lifetime– is a word that appears in this Plan Document in reference to benefit maximums and limitations. Lifetime is understood to mean while covered under this Plan. Under no circumstances does Lifetime mean during the lifetime of the Covered Person.
Medical Care Facility– means a Hospital, a facility that treats one or more specific ailments or any type of Skilled Nursing Facility.
Medical Emergency– means a sudden onset of a condition with acute symptoms requiring immediate medical care and includes such conditions as heart attacks, cardiovascular accidents, poisonings, loss of consciousness or respiration, convulsions or other such acute medical conditions.
Medically Necessary– care and treatment is recommended or approved by a Physician; is consistent with the patient’s condition or accepted standards of good medical practice; is medically proven to be effective treatment of the condition; is not performed mainly for the convenience of the patient or provider of medical services; is not conducted for research purposes; and is the most appropriate level of services which can be safely provided to the patient.
All of these criteria must be met; merely because a Physician recommends or approves certain care does not mean that it is Medically Necessary.
The Plan Administrator has the discretionary authority to decide whether care or treatment is Medically Necessary.
Medicare– is the Health Insurance for The Aged and Disabled program under Title XVIII of the Social Security Act, as amended.
Mental Disorder– means any disease or condition, regardless of whether the cause is organic, that is classified as a Mental Disorder in the current edition ofÂ International Classification of Diseases, published by the U.S. Department of Health and Human Services or is listed in the current edition of Diagnostic and Statistical Manual of Mental Disorders, published by the American Psychiatric Association.
Morbid Obesity– is a diagnosed condition in which the body weight exceeds the medically recommended weight by either 100 pounds or is twice the medically recommended weight in the most recent Metropolitan Life Insurance Company’s tables (or similar actuarial tables) for a person of the same height, age and mobility as the Covered Person.
No-Fault Auto Insurance– is the basic reparations provision of a law providing for payments without determining fault in connection with automobile accidents.
Outpatient Care– is treatment including services, supplies and medicines provided and used at a Hospital under the direction of a Physician to a person not admitted as a registered bed patient; or services rendered in a Physician’s office, laboratory or X-ray facility, an Ambulatory Surgical Center, or the patient’s home.
Pharmacy– means a licensed establishment where covered Prescription Drugs are filled and dispensed by a pharmacist licensed under the laws of the state where he or she practices.
Physician– means a Doctor of Medicine (M.D.), Doctor of Osteopathy (D.O.), Doctor of Dental Surgery (D.D.S.), Doctor of Podiatry (D.P.M.), Doctor of Chiropractic (D.C.), Audiologist, Certified Nurse Anesthetist, Licensed Professional Counselor. Licensed Professional Physical Therapist, Midwife, Occupational Therapist, Optometrist (O.D.), Physiotherapist, Psychiatrist, Psychologist (PhD.), Speech Language Pathologist and any other practitioner of the healing arts who is licensed and regulated by a state or federal agency and is acting within the scope of his or her license.
Plan Administrator– is the employer, also known as the Plan Sponsor.
Plan Participant– is any Employee or Dependent who is covered under this Plan.
Plan Sponsor– is the employer, also known as the Plan Administrator.
Plan Year– is the 12-month period beginning on either the effective date of the Plan or on the day following the end of the first Plan Year which is a short Plan Year.
Preexisting Condition– is a condition for which medical advice, diagnosis, care or treatment was recommended or received within six months of the person’s Enrollment Date under this Plan. Genetic Information is not a condition. Treatment includes receiving services and supplies, consultations, diagnostic tests or prescribed medicines. In order to be taken into account, the medical advice, diagnosis, care or treatment must have been recommended by, or received from, a Physician or where a reasonable person would have sought medical advice or treatment.
In Group Medical plans, The Pre-Existing Condition does not apply to pregnancy, to a newborn child who is covered under a Plan within 31 days of birth, or to a child who is adopted or placed for adoption before attaining age 18 and who, as of the last day of the 31-day period beginning on the date of the adoption or placement for adoption, is covered under this Plan. A Pre-Existing Condition exclusion may apply to coverage before the date of the adoption or placement for adoption.
The prohibition on Pre-Existing Condition exclusion for newborn, adopted, or pre-adopted children does not apply to an individual after the end of the first 63-day period during all of which the individual was not covered under any creditable coverage.
Pregnancy– is childbirth and conditions associated with Pregnancy, including complications.
Prescription Drug– means any of the following: a Food and Drug Administration-approved drug or medicine which, under federal law, is required to bear the legend: Caution: federal law prohibits dispensing without prescription; injectable insulin; hypodermic needles or syringes, but only when dispensed upon a written prescription of a licensed Physician. Such drug must be Medically Necessary in the treatment of a Sickness or Injury.
Recovery– means monies paid to the Covered Person by way of judgment, settlement, or otherwise to compensate for all losses caused by the Injuries or Sickness whether or not said losses reflect medical or dental charges covered by the plan.
Refund– means repayment to the Plan for medical or dental benefits that it has paid toward care and treatment of the Injury or Sickness.
- For all persons but a covered Dependent daughter: Illness, disease or Pregnancy.
- For a covered Dependent daughter: Illness or disease, not including Pregnancy or its complications.
Skilled Nursing Facility– is a facility that fully meets all of these tests:
- It is licensed to provide professional nursing services on an inpatient basis to persons convalescing from Injury or Sickness. The service must be rendered by a registered nurse (R.N.) or by a licensed practical nurse (L.P.N.) under the direction of a registered nurse. Services to help restore patients to self-care in essential daily living activities must be provided.
- Its services are provided for compensation and under the full-time supervision of a Physician.
- It provides 24-hour a day nursing services by licensed nurses, under the direction of a full-time registered nurse.
- It maintains a complete medical record on each patient.
- It has an effective utilization review plan.
- It is not, other than incidentally, a place for rest, the aged, drug addicts, alcoholics, mental retardates, Custodial or educational care or care of Mental Disorders.
- It is approved and licensed by Medicare.
This term also applies to charges incurred in a facility referring to itself as an extended care facility, convalescent nursing home or any other similar nomenclature.
Spinal Manipulation/Chiropractic Care– means skeletal adjustments, manipulation or other treatment in connection with the detection and correction by manual or mechanical means of structural imbalance or subluxation in the human body. Such treatment is done by a Physician to remove nerve interference resulting from, or related to, distortion, misalignment or subluxation of, or in, the vertebral column.
Subrogation– means the Plan’s rights to pursue the Covered Person’s claims for medical or dental charges against a third party.
Substance Abuse– is the condition caused by regular excessive compulsive drinking of alcohol and/or physical habitual dependence on drugs that results in a chronic disorder affecting physical health and/or personal or social functioning. This does not include dependence on tobacco and ordinary caffeine-containing drinks.
Usual and Reasonable Charge– is a charge which is not higher than the usual charge made by the provider of the care or supply and does not exceed the usual charge made by most providers of like service in the same area. This test will consider the nature and severity of the condition being treated. It will also consider medical complications or unusual circumstances that require more time, skill or experience.