Health Insurance Acronyms

If you are enrolling in a new health insurance plan, or if you have health insurance and receive routine correspondence and information, you may have noticed the use of several different acronyms relating to the insurance. There are hundreds of acronyms used in the insurance industry to represent policy types, regulations, laws and procedures. Some of the most common health insurance acronyms are used on a regular basis, and it's a good idea to become familiar with them.

HIPAA

• According to HIPAA.org, the Health Insurance Portability and Accountability Act was established in 1996, and one of its main purposes is to protect an insured's information. HIPAA sets standards for how health insurance companies, doctors' offices and hospitals can store, transfer and release an individual's health insurance and medical information. HIPAA regulations help ensure an individual's private medical information is safe from release to unauthorized parties.

PCP

• PCP stands for primary care physician. It is a common term used in the insurance industry, and may even be printed on your insurance card. Most health insurance providers request that you select a primary care physician who will be the doctor you primarily visit for all of your health concerns. In many cases, the primary care physician should be an approved doctor who has been accepted into the insurance company's list of approved medical providers.

ADHA

• If your health insurance plan includes a dental insurance component, you may see ADHA, which stands for American Dental & Hygienists Association. Your health insurance provider may request that you select an approved member of the American Dental & Hygienists Association to perform your dental work under the terms of your insurance. You may also see ADA, which represents the American Dental Association.

COBRA

• COBRA stands for the Consolidated Omnibus Budget Reconciliation Act. This act was put in place by the federal government. It provides an individual the right to continue purchasing insurance and extend uninterrupted health insurance coverage that might otherwise be lost due to a job loss or reduced hours at work.

FSA

• FSA is an acronym that represents a flexible spending account. An FSA may also be referred to as an MSA, or medical savings account. This special savings account allows an individual to save pre-tax dollars in a separate fund that can later be used to pay for qualifying medical expenses such as insurance premiums, medical deductibles, prescription drug coverage and medical equipment like glasses or a wheelchair.

HMO

• HMO, or health management organization, is a type of managed care system that most health insurance providers offer. An HMO is designed to provide comprehensive health coverage to the patient while keeping costs down by contracting with a specific network of medical providers.