Glossary of health insurance terms
By Bankrate.com

Arguably the most vital coverage to have, health insurance can mean the difference between life and death. If terms on your policy confuse you, look up the definition here.

21 must-know health insurance terms

1. Co-insurance 11. Indemnity 2. Co-payment 12. Managed care 3. Consumer directed plan 13. Maximum out-of-pocket costs 4. Covered expenses 14. Medical savings account 5. Federal Insurance Contributions Act 15. Medicare 6. Flexible spending account 16. Portability 7. Group insurance 17. POS 8. HMO 18. PPO 9. Hospital indemnity insurance 19. Pre-existing condition 10. HSA or health savings account 20. Supplemental medical insurance     21. Third-party payer

1. Co-insurance -- In health insurance, the percentage of the claims that an individual must pay, less the deductible. In property and casualty insurance, a provision that requires the insured to maintain a specified amount of insurance based on the value of the property insured.

2. Co-payment -- An arrangement splitting the cost of medical services. The client pays a flat fee for service including prescriptions, tests and X-rays and the insurance company pays the rest.

3. Consumer directed plan -- A relatively new addition to the health insurance world, consumer directed plans or consumer driven plans are often a good choice for rich, healthy people. They have a high deductible and are attached to a health savings account that can be used to pay for covered medical expenses.

4. Covered expenses -- The medical services and procedures that your insurance company will pay for.