Important Terms to know

213(d) expenses
A section of the IRS tax code that defines eligible health care expenses.  This includes medical, vision, and dental expenses.

Claim
A payment request provided to SelectAccount for the reimbursement of eligible expenses.

Co-insurance
A health insurance plan provision where the insurer and the insured share costs incurred after the deductible is met and before the out-of-pocket maximum is reached.

Co-pay
A payment, usually a fixed amount, that a member makes on a per-service basis as part of their health insurance policy.

Crossover
An optional SelectAccount convenience benefit that allows members to eliminate the need to file paper claims by creating an electronic connection between health plans and SelectAccount.

Deductible
The annual amount a member pays toward eligible health care services each year before their health insurance plan pays on their behalf.

Direct deposit
A secure payment-transfer system that allows SelectAccount to pay claims or accept HSA contributions directly to a member’s bank account that is faster and more convenient than paper checks.

Eligibility
The conditions a member must satisfy to be covered by an employer’s benefit plan or an individual HSA account.

Eligible dependent
A dependent of a member as defined by an employer’s benefit plan (such as a spouse, child, domestic partner or other dependent) or a tax dependent of a member with a HSA account.

Eligible expenses
Expenses defined as eligible by an employer’s benefit plan or 213(d) eligible expenses for an HSA account.

Explanation of payment (EOP)
A notice sent from SelectAccount to a member explaining how a claim was processed. It includes services provided, amount claimed, amount approved, and payment made.

Flexible spending account (FSA)
A tax-advantaged employer benefit that allows employees to elect a portion of pre-tax wages for qualified expenses for a plan year.  Separate plans can be offered for medical care or work related dependent care (such as child care) expenses.

Grace period
An optional FSA plan feature that allows current claims to be paid with a remaining previous year balance for a short period of time in a new plan year.

High deductible health plan (HDHP)
A health insurance plan that has a high minimum deductible.  A HDHP can be HSA compatible if it meets the design requirements defined by the IRS.

Health reimbursement arrangement (HRA)
An employer funded benefit plan that allows the reimbursement of eligible medical expenses to eligible family members providing tax-advantaged benefits to both employee and employer.

Health savings account (HSA)
A tax-advantaged medical savings account owned by the member.  Contributions can be accepted from individuals and/or employers to member accounts who also have a HSA compatible HDHP.  Withdrawals can be made for eligible expenses of eligible family members at any time even if no longer covered by a HSA compatible HDHP.

Member
An individual enrolled in and covered by an employer or individual tax-advantaged benefit plan.

Member responsibility
The amount a member is responsible for of the total charge for health care services after all other insurance has paid.  This is the amount SelectAccount could reimburse for eligible expenses.

Non-bank trustee
SelectAccount is an approved IRS non-bank trustee.  A non-bank trustee must demonstrate capabilities such as fiduciary ability, capacity to manage accounts, fitness to handle funds, and adhere to rules of fiduciary conduct.  Since SelectAccount is not a bank it requested and received approval by the IRS to act as a trustee and custodian for HSA accounts.

Open enrollment
The period of time when an employee may change enrollment status or benefit plans, usually without evidence of good health or waiting periods.

Out-of-pocket costs
The portion of health care costs that a member is responsible for, including co-pays, co-insurance, deductibles and services not covered by a health care plan.

Plan document
A detailed description of an employer’s benefit program.

Plan year
The period of time an employer’s benefit plan operates for that year.  This can be a calendar year or fiscal year based on the employer’s plan design.

Premium only plan (POP)
A tax-advantaged benefit that allows employees to pay their portion of group health insurance premiums with pre-tax dollars.

Pre-tax
Before taxes have been deducted.

Qualified expense
Expenses incurred by a participant or a participant’s dependents that are eligible for reimbursement as defined by the terms of their benefit plan or 213(d) eligible expenses for a HSA account.

Qualified medical expense
A subset of qualified expenses that relate to health care expenditures.

Roll over
The transfer of a balance from one plan year to the next.  This option may be seen in HRA and Transportation reimbursement accounts.

Run Out
The time period allowed by a benefit plan for claim submission after a service is performed.

SelectAccount ID
The identification number assigned to a member by SelectAccount.

Summary plan description (SPD)
A summary description of an employer’s benefit program.

Tax-advantaged
Being tax-free, tax-deductible or having other tax benefits.

TaxSaver
A benefit plan that allows employees of an employer who do not offer group health insurance to pay for individual health care insurance premiums on a pre-tax basis saving money for both employees and the employer.

Transportation reimbursement account
A benefit plan that allows employees to save money by using pre-tax dollars to pay for work-related transportation expenses, such as transit passes, vanpool commuting and qualified parking.

Use it or lose it
For FSA plans, there is a use it or lose it rule, which means that the funds in that account are lost and are not made available to use after the plan year ends.

Voluntary employees beneficiary association plan (VEBA)
A tax-free medical expense account funded by an employer and held in trust for use by employees, retirees, and their eligible dependents to pay for eligible medical expenses.