Healthcare

The Affordable Care Act provided federal funding to expand Medicaid eligibility to those with incomes up to 138% of the federal poverty level (FPL). While the Supreme Court ruled that states could opt out of this Medicaid expansion, as of May 2019, 37 states (including Washington, D.C.) have expanded Medicaid.

A special account you put money into to use to pay for certain out-of-pocket healthcare costs. You don’t pay taxes on this money, which  means you’ll save an amount equal to the taxes you would have paid on the money you set aside.

Also known as health reimbursement accounts, HRAs permit businesses to offer pre-tax dollars to employees to help pay premiums and/or other out-of-pocket costs associated with medical care and services up to a maximum dollar amount for a coverage period. While an HRA may be offered with other employer-provided health plans, employees need not be covered under any other healthcare plan to participate. Employers own and fund the account for employees, and unused amounts may roll over to the next year.

Individual coverage refers to healthcare coverage that is not tied to employer-based coverage, whether purchased for an individual or a family. This can refer to coverage purchased through Healthcare.gov or an individual state marketplace.

These savings accounts are typically combined with a high-deductible health plan that allows users to put aside pre-taxed money. Because high-deductible plans generally cost less than low-deductible plans, HSAs are a good option for employers who cannot afford a comprehensive (low-deductible) health plan.

Group medical coverage refers to a single policy issued to a group (typically a business with employees, although there are other kinds of groups that can get coverage) that covers all eligible employees and sometimes their dependents.

In-network providers contract with your health insurance company plan to negotiate set payment amounts. This means your copayments for in-network providers are typically lower than to out-of-network providers.

The total amount that must be paid in advance in order obtain coverage for a particular level of services. Usually health insurance premiums are billed and paid on a monthly basis.