Glossary

Beneficiary (Primary): A primary beneficiary is the beneficiary or beneficiaries that you name to receive the benefits if they are living at the time of your death. Primary beneficiaries are the first in line to receive death benefits.

Beneficiary (Contingent): Contingent beneficiaries, or secondary beneficiaries, are those named to receive the insurance proceeds if no primary beneficiary is alive at the time of your death.

Coinsurance: Once you meet the plan’s deductible, you share responsibility for your medical expenses with Children’s Mercy through coinsurance. You pay 10 percent of the total cost for seeing a provider in the Cigna network. Children’s Mercy pays the remaining 90 percent of the cost.

Deductible: This is the amount you pay before your medical plan starts paying benefits. The money in your Health Account can be used to pay for eligible expenses you incur during the plan year.

Dependent Day Care Flexible Spending Account (FSA): This is an optional account you may set up to pay for eligible dependent day care expenses — including child and elder care — with tax-free dollars. You contribute to your FSA through automatic, before-tax payroll deductions. A “use it or lose it” rule applies to FSAs, meaning that any money left in your FSA at the end of the plan year is forfeited. For a full list of eligible expenses, refer to IRS Publication 503, available at www.irs.gov. Highly Compensated Employees may be limited in the amount they can contribute due to nondiscrimination requirements.

Health Account: The money Children’s Mercy puts into your Health Account (which is a health reimbursement account, or HRA) pays for eligible medical expenses you incur during the plan year. Any unused dollars in your Health Account at the end of the plan year will roll over for use in the next plan year. When you and/or your covered spouse complete wellness activities, you earn points, which convert to dollars in your Health Account at the beginning of the next plan year, if you complete the health screening and health assessment by the communicated deadline.

Health Care Flexible Spending Account (FSA): This is an optional account you may set up to pay for out-of-pocket eligible health care expenses — including deductibles and coinsurance for medical, dental and vision care — with tax-free dollars. You contribute to your FSA through automatic, before-tax payroll deductions. A “use it or lose it” rule applies to FSAs, meaning that any money left in your FSA at the end of the plan year (including the 2½-month grace period following the 12-month plan year) is forfeited. If you make contributions to a Health Care FSA, the law prevents your spouse from contributing to a Health Savings Account through his or her employer. For a full list of eligible expenses, refer to IRS Publication 502, available at www.irs.gov.

Out-of-pocket maximum: This is a limit on the amount you pay for eligible medical expenses out of your pocket during the year. Once you meet your out-of-pocket maximum, your plan pays 100 percent of covered services for the rest of the plan year.

Payroll deductions: This is the fixed amount that you contribute from each paycheck for coverage.

Preventive care: In-network preventive care is fully covered under Children’s Mercy medical plans, so you pay nothing. Preventive care includes routine care designed to prevent illness or disease, including annual physicals, immunizations and cancer screenings. If the same tests are conducted to diagnose an illness or treat a known condition, they are not considered preventive care and your plan’s normal charges will apply.