Glossary of health insurance terms
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5. Federal Insurance Contributions Act -- The Federal Insurance Contributions Act, or FICA, consists of payments to the Social Security retirement supplement system and the Medicare hospital insurance program. A tax for each component is levied on employers, employees and certain self-employed individuals. These taxes are taken out of your paycheck separately from your income taxes.

6. Flexible spending account -- A plan to which you contribute money each pay period to cover additional medical insurance coverage or child care. Under this plan, you then receive medical insurance and child care tax-free.

7. Group insurance -- Insurance coverage usually issued to an employer under a master policy for the benefit of employees.

8. HMO -- Health Maintenance Organization. Prepaid medical plan in which members agree to use a specific network of providers.

9. Hospital indemnity insurance -- Pays a set amount for a hospital stay based on daily, weekly or monthly limits, regardless of expenses.

10. HSA or health savings account -- A tax-advantaged savings account that allows policyholders to use pretax money on covered medical expenses. They are accompanied by a high-deductible insurance plan and contributions can be made by an employer or the employee. Cash withdrawals are subject to taxation and may be penalized.

11. Indemnity (fee for service) -- A traditional health care plan where all doctors are covered. The insurer pays 80 percent while the policyholder pays 20 percent co-insurance as well as any amount the doctor charges over the reasonable and customary rate.

12. Managed care -- A health care system whose main function is to control costs. The goal is quality, cost-effective health care.

13. Maximum out-of-pocket costs -- Limit that the insured will have to pay out of pocket. Includes things like deductibles, co-insurance and co-payments.