Insurance

DEFINITION A health reimbursement arrangement (HRA) is an account-based health plan employers can offer to employees instead of a traditional group health plan. Key Takeaways Definition and Examples of a Health Reimbursement Arrangement A health reimbursement arrangement (HRA) is an account-based health plan employers can offer to employees instead of a traditional group health plan. The employer … Read more

DEFINITION A flexible spending account (FSA) is an employer-sponsored savings account that lets employees pay certain out-of-pocket medical or dependent care costs with tax-free dollars. How Flexible Spending Accounts Work Employees and employers (on behalf of the employee) can contribute to a flexible spending account with pre-tax income when an employer offers an FSA. Employees can then … Read more

DEFINITION Windstorm insurance is usually an add-on policy for homeowners insurance. It provides protection if a wind event such as a hurricane or tornado damages your home or personal possessions. How Does Windstorm Insurance Work? Windstorm insurance is a supplemental policy you can add to your existing homeowners insurance. Also sometimes known as hurricane insurance, this type of … Read more

DEFINITION A reinsurer steps in to help the original insurer pay claims. Definition and Examples of Reinsurance The purpose of insurance is to transfer and share risk—your auto policy allows you to share the risk of a potential auto accident with a large company. Direct insurers sell homeowner, auto, health, and life insurance policies directly to you, the … Read more

The property/casualty insurance industry is cyclical, continually fluctuating between a hard and soft market. These fluctuations affect the availability and price of business insurance, so it is helpful to understand why they occur. Key Takeaways Hard and Soft Markets Hard and soft markets are different parts of the insurance economic cycle. Hard Insurance Market A … Read more

DEFINITION Insurance underwriting is how an insurance company evaluates its risk. It helps an insurance company decide whether taking a chance on providing coverage to a person or business would be profitable. Definition and Example of Insurance Underwriting Insurance underwriting is the way an insurance company assesses the risk and profitability of offering a policy to … Read more

DEFINITION Medicare is a health insurance program provided by the federal government for people who are at least 65 years old, those who are younger but receiving Social Security disability benefits, or those who are younger and have end-stage renal disease (ESRD) or amyotrophic lateral sclerosis (ALS). Medicare helps the elderly and disabled afford the health … Read more

You might need to use an out-of-network provider for several reasons. Maybe you experienced a medical emergency and had to be treated at the nearest hospital. Or perhaps you needed to see a specialist, but the closest one in your network was hundreds of miles away. Whatever the reason, health care costs associated with a provider outside … Read more

DEFINITION Capitation payments are fixed payments to a medical provider from a state or a health plan. Capitation payments are fixed payments to a medical provider from a state or a health plan. These payments are paid monthly for each member enrolled in the health care plan. No matter how many times the member visits … Read more