Glossary

The term "HDHP" means high-deductible health plan.

HIPAA provides rights and protections for participants and beneficiaries in group health plans that improve the portability and continuity of health coverage.  HIPAA provides special enrollment rights, prevents discrimination against participants based on medical status, and increases the security and privacy of health care information.

An HMO is a legal entity that consists of participating medical providers that provide or arrange for care to be furnished to a given population group for a fixed fee per person.  HMOs are used as alternatives to traditional indemnity plans as a way to manage costs and keep health care expenses low.

An HRA is an employer-funded account governed by IRS Notice 2002-45 that reimburses eligible uninsured health expenses and may be offered in conjunction with a qualified high-deductible health plan (HDHP).  The unused account balance carries forward to subsequent years.  HRAs are also known as defined contribution health plans.

An HSA is a trust created or organized in the United States as a savings account exclusively for the purpose of paying the qualified medical expenses of the account beneficiary, who is covered under a qualified high-deductible health plan during the months for which contributions are made to an HSA.  HSAs must satisfy the requirements of IRC Section 223(d).

HSA distributions are tax-free withdrawals from an HSA that are used to reimburse qualified medical expenses.

An HDHP is a health plan that has specified annual deductible and annual out-of-pocket maximum provisions and that otherwise satisfies the requirements of IRC Section 223(c)(2).  HDHPs are often, but not always, offered in conjunction with an HSA or HRA.

The term "HIPAA" means the Health Insurance Portability and Accountability Act of 1996.

The term "HMO" means health maintenance organization.

The term "HRA" means health reimbursement arrangement.

The term "HSA" means health savings account.