Forms & Publications

SJCERA GLOSSARY

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Term Definition
Includable Compensation Compensation which appears on an individual’s W-2 report at year-end for income tax purposes. Generally referred to as taxable income.
Indemnity Plan An indemnity plan is a health care plan that provides cash payment for designated covered services to physicians, hospitals, and other providers. Payments may be made directly to service providers or as reimbursement to plan members.
Individual Contract Retirement Trust A pension plan under which a trust is created, to buy and hold title to individual insurance or annuity contracts, for those covered under the plan. The trust receives the premium payments from the employer and transmits them to the insurance company, receiving in turn the individual policies.
Individual Retirement Account An IRA is an Individual Retirement Account as defined in Section 408(a) of the Internal Revenue Code.
Individual Retirement Account (IRA) A form of defined contribution plan, whereby individuals may make tax- deductible contributions to their own retirement account and to their spouse’s, if the spouse is not employed. Contributions are limited to an annual maximum, as defined by law. The Tax Reform Act of 1986 greatly reduced the usefulness of lRAs by restricting the tax- deductibility of contributions, based on adjusted gross income for active participants in company pension plans. integration of retirement plan with Social Security The coordination of a pension plan with Social Security, so that an employee whose salary is greater than the amount subject to Social Security taxes receives the same total benefit (pension benefits plus Social Security payments) as a percentage of salary, as does an employee whose entire salary is subject to Social Security taxes.
Insurable Interest

An insurable interest is a condition of dependence upon the life and health of a person. Everyone has an insurable interest in himself and also:

  • Any person on whom he depends either wholly or in part for education or support
  • Any person under a legal obligation to him for the payment of money, property or services, whose death or illness might delay performance or prevent payment
  • Any person upon whose life any estate or interest vested in him depends
Insurance -COB The coordination of benefits (COB) rule applies in situations where a member (or dependent) is covered by both a members health insurance plan and another plan such as a spouse's insurer or Medicare. Under this rule, one plan is considered the primary payer and pays first, while the other plan is considered the secondary payer. Payment is coordinated under the COB rule to ensure that no more than 100% of any insurance claim is paid by all insurers.
Insurance -COBRA COBRA (Consolidated Omnibus Budget Reconciliation Act of 1985) is a federal law for a limited period of time that requires employers to offer continuing health insurance coverage to certain employees and their dependents when group health insurance coverage has terminated.
Insurance -Copayments Copayments are part of a health care cost sharing arrangement in which a plan member pays a specified charge for a service, such as $10 for an office visit. The member is usually responsible for payment at the time the service is rendered.
Insurance –HCFA HCFA is the Health Care Financing Administration, which is the federal agency within the Department of Health and Human Services (HHS) responsible for administering the Medicare program.
Insurance -HMOs A health maintenance organization (HMO) is a type of health care provider that offers to its members an agreed-upon set of basic and supplemental health services at specific facilities for a fixed prepaid premium. Usually there are no claim forms.
Insurance -Indemnity Plan An indemnity plan is a health care plan that provides cash payment for designated covered services to physicians, hospitals, and other providers. Payments may be made directly to service providers or as reimbursement to plan members.
Insurance –Medicare Medicare is the nationwide federal health insurance program that is administered by the Health Care Financing Administration (HCFA), a branch of the U.S. Department of Health and Human Services. This program may cover the cost of medical care, hospitalization, and related services for eligible persons, primarily for people aged 65 and over or for disabled people under age 65.
Insurance -Medicare HMO Plan A Medicare HMO plan is a health plan offered by an HMO that has contracted with the federal government to provide health care services to individuals with Medicare Part A and Part B coverage. Plan participants agree to receive all services from plan providers — and Medicare, in turn, pays the HMO a monthly fee for each enrolled member.
Insurance -Medicare Part A Medicare Part A is hospital insurance that covers inpatient care in a hospital or skilled nursing facility, and also hospice care.   Part A insurance is automatic and free for eligible retirees who are fully insured under Social Security and have applied for Social Security benefits, or who have paid sufficient Medicare payroll tax. Members who are not fully insured pay premiums that are based on the number of Social Security credits they've earned.
Insurance -Medicare Part B Medicare Part B is medical insurance that covers physician services, outpatient hospital care, lab and x-rays, ambulance charges, and some other services not covered by Medicare Part A.   Part B coverage is voluntary and retirees do not have to be fully insured under Social Security to be eligible.   Members 65 or older who are not eligible for Part A coverage may elect to pay a flat rate for Part B coverage.
Insurance -Medicare Supplement Plan A Medicare supplement plan is an indemnity plan for individuals who are enrolled in both Part A and Part B of Medicare. The plan supplements Medicare coverage by: • Paying Medicare Part A deductibles and copayments, as well as Medicare Part B deductibles and 20% of Medicare-approved amounts • Providing coverage for certain items that Medicare does not cover, such as some prescription drugs and care while traveling outside the United States.
Insurance preferred providers Preferred providers are physicians, hospitals, and other health care providers who contract to deliver health care services to persons covered by a particular plan.
Insurance -reasonable and customary charge A reasonable and customary charge is the prevailing charge made by physicians of similar expertise, for a similar procedure, in a particular geographical area of a community.
Internal Revenue Code (IRC) of 1954 As amended, this code is the basic federal tax law.
Internal Revenue Service (IRS) Part of the Treasury Department, the IRS is a government agency charged with the collection of taxes. The income tax code and regulations often affect the procedures and methods of accounting. investment The process by which money is transferred from one owner to another for the purpose of making more money in the form of capital gains or additional income or a combination of both.
IRA An IRA is an Individual Retirement Account as defined in Section 408(a) of the Internal Revenue Code.
IRA Rollover A rollover is the transfer of a plan distribution from one qualified retirement fund to another, as defined by section 408(a) of the Internal Revenue Code.