Glossary

Annual Deductible

The amount of money you need to pay out-of-pocket before your insurance begins contributing money to your health care costs.

Brand Name Drugs

When new drugs come on the market, they are protected by a patent for a certain period preventing companies from copying the formula. After the patent ends, other companies can make and sell the drug using the same formula and active ingredients (generic drugs). Brand name drugs are typically more expensive than their generic counterparts.

Coinsurance

The percentage you pay for the cost of covered health care services after you’ve met your deductible. For example, if the coinsurance under your plan is 10%, you would pay 10% of the cost of the service and your insurance would pay the remaining 90%.

Dependent

Dependents are family members who are eligible to be enrolled in the 8×8 benefits plans according to the plan rules on the New Hire page.

Explanation of Benefits (EOB)

When a claim is filed for medical or dental services, you may receive an EOB from the insurance carrier. The EOB explains the cost of your claim, how much the plan paid and any remaining balance for which your provider may send you a bill. You should never pay a bill from a provider without comparing it to the EOB first.

Formulary Prescription Drug List

This is our prescription plan’s list of medications that are preferred based on their quality and price.

FSA Carryover Amount

The carryover amount is the maximum amount of unused FSA funds that the IRS allows plan participants to carryover from one year to the next.

FSA Runout Period

The runout period is the time during the new plan year where individuals with an FSA can file claims for expenses incurred during the prior plan year.

Generic Drugs

Once a brand name drug’s patent ends, other companies can produce similar drugs (generic drugs). They have the same active ingredients as their brand name counterparts and have been approved by the Food and Drug Administration (FDA) as safe and effective, but they typically cost much less.

In-Network

A group of doctors, hospitals, labs, and other providers that your health insurance contracts so you can visit and pay pre-negotiated (and often discounted) rates.

Out-of-Pocket Maximum

The maximum out-of-pockets costs you will have to pay during the plan year. Once you’ve reached this amount, your plan will cover 100% of your qualified medical expenses for the plan year.