Dictionary
The Dictionary provides concise definitions of health economics terms, arranged alphabetically for quick reference. Use it to understand unfamiliar terminology or confirm the meaning of a specific term.
B
- Beneficiary
- An individual eligible to receive benefits under a specific health insurance plan or government programme, such as Medicare or Medicaid.
C
- Crowd Out
- A phenomenon where public health insurance expansion leads some who would have bought private cover to instead enrol in the public programme.
D
- Dependent Coverage
- Health insurance coverage extended to an eligible family member, such as a spouse or child, under a primary policyholder's plan.
E
- Employee Contribution
- The portion of health insurance premium costs an employee pays directly, distinct from the portion covered by their employer.
- Employer Contribution
- The portion of health insurance premium costs an employer pays on behalf of an employee within an employer-sponsored arrangement.
- Employer Mandate
- A legal requirement that employers of a certain size offer qualifying health insurance to employees, or face a financial penalty.
- Exchange
- An organised marketplace, established under insurance regulation such as the Affordable Care Act, where individuals compare and buy health insurance plans.
G
- G-BA
- The German Federal Joint Committee, the highest decision-making body within statutory health insurance determining which services are covered, informed by IQWiG.
- Grandfathered Plan
- A health insurance plan predating a major regulatory reform, exempt from certain new requirements as long as it avoids significant coverage changes.
H
- Health Insurance
- A financial arrangement in which an individual or group pays a periodic premium for coverage of specified healthcare costs.
- Health Insurance Market
- The overall system through which insurance products are offered, purchased, and regulated, encompassing the individual, small group, and large group segments.
I
- Induced Innovation
- The theory that health insurance, by shielding patients from full costs, steers medical innovation toward more expensive, quality-enhancing treatments rather than cost-reducing ones.
- Insurance Coverage Gap
- A period during which an individual lacks any health insurance, whether from a job transition, lost programme eligibility, or another disruption.
- Insurance Mandate
- A general term for a legal requirement that individuals maintain, or employers offer, health insurance coverage.
L
- Low-Income Subsidy
- Financial assistance reducing the cost of health insurance or healthcare specifically for individuals or households with limited resources.
M
- Mandate
- A legal requirement compelling an action related to health insurance, such as individuals maintaining coverage or employers offering it.
- Moral Hazard in Health Insurance
- The tendency for insured individuals to consume more healthcare, or take fewer precautions against illness, than if they bore the full cost themselves.
N
- National Health Insurance
- A financing model in which a single, government-administered programme covers an entire population, while care itself may still be delivered by mixed providers.
P
- Premium
- The periodic payment, typically monthly, an individual or employer makes to an insurer in exchange for health insurance coverage.
- Premium Subsidy
- Financial assistance provided by a government to reduce health insurance premium costs for eligible individuals or households.
- Private Health Insurance
- Health insurance coverage provided by non-governmental insurers, funded through premiums paid by individuals or employers, unlike government-administered public programmes.
R
- RAND Health Insurance Experiment
- A large randomised US experiment assigning families to insurance plans with varying cost-sharing levels, providing key evidence on how price affects healthcare use.
- Rate Setting
- The overall process by which an insurer or regulator determines premium or payment rates for a health insurance product or contract.
S
- Social Health Insurance
- A financing model funding healthcare through mandatory income-based contributions from employers and employees, exemplifying the Bismarck model of organisation.
T
- Tax Credit
- A reduction in tax owed, provided by government to encourage a behaviour or offset a cost, such as buying health insurance.
- Trust Fund
- A dedicated financial account established to hold and manage funds designated for a specific purpose, such as national health insurance.