Decoding Benefits Acronyms and Abbreviations

Benefits documents sometimes seem to be nothing but a bunch of bewildering acronyms strung together. But the meanings behind those letters should be anything but bewildering because they represent key aspects of your employee benefits. Following is a list of the most common acronyms and abbreviations and the meanings behind them.

COBRA. “Consolidated Omnibus Budget Reconciliation Act” allows you to continue your health insurance after you leave a job.

EAP. “Employee Assistance Program” is a program that helps workers address work-life challenges, get professional services and more.

EOB. “Explanation of Benefit” is a document you receive from your health benefits provider after a covered healthcare service.

FMLA. “Family Medical Leave Act” protects you from losing your job if you take time off for a serious illness or to care for a family member or newborn.

FSA. “Flexible Spending Account ” is a pre-tax account used to pay for expenses such as healthcare, parking, education and childcare.

HSA. “Health Savings Account” is an account that sets aside pre-tax dollars for health needs.

HRA. “Health Reimbursement Account” is a savings account your employer might offer to help manage certain medical expenses.

HDHP. “High-Deductible Health Plan” is a health plan with low premiums and high deductibles.

PPO. “Preferred Provider Organization” is a group of physicians, hospitals and other providers that contract with an insurer to provide reduced-cost services.

QLE. “Qualifying Life Event” is a life event (including marriage, divorce or birth of a child) that qualifies you to make changes to benefits coverage.

PCP. “Primary Care Provider” is your doctor, nurse practitioner, physical therapist, etc.
HIPPA. “Health Insurance Portability Accountability Act” is the rule that protects your personal medical information.

LTD. “Long-Term Disability” is a type of insurance that provides a percentage of your income in the event you are unable to work for a long period of time.

STD. “Short-Term Disability” is a type of insurance that provides a percentage of your income in the event you can’t work for a defined amount of time.

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