Glossary of Terms
Affinity – A group formed around a shared interest or common goal, to which individuals formally or informally belong. Affinity groups are generally precluded from being under the aegis of any governmental agency, and their purposes must be primarily non-commercial. benafica.com/insurance-solutions-for-associations
Associations – A group of people banded together for a specific purpose. To qualify under section 501(a) of the Code, the association must have a written document, such as articles of association, showing its creation. At least two people must sign the document, which must be dated. Benafica helps associations as a TPA. What does that mean? Learn more here: benafica.com/insurance-solutions-for-associations
Broker – An insurance broker is a professionally trained expert who works as an intermediary between a client and an insurance provider. benafica.com/brokers
Dental and Vision – Insurance separate from standard health insurance, dental and vision coverage is specifically for work related to teeth and eye care. benafica.com/vision-and-dental
Disability Income – Disability Income insurance helps ease the financial challenges associated with an illness or injury preventing you from working. benafica.com/individuals-overview/disability-income
FSA (Flexible Spending Account) – A Flexible Spending Account (FSA) is a valuable employee benefit that allows you to have pre-tax dollars withheld from your paycheck to pay for eligible health care or dependent care expenses. benafica.com/flexible-spending-accounts
Group Benefits – Group benefits is insurance and other perks provided by an organization – usually and employer – to all or a selection of people form that organization. benafica.com/employers-overview
Health Insurance – A benefit offered by an employer or other source that provides financial assistance for medical costs. benafica.com/health
HRA – A Health Reimbursement Arrangement (HRA) is an employer funded health benefit account that reimburses employees for out-of-pocket medical expenses, and in some cases for certain insurance premiums. benafica.com/hras-ichra-qsehra
ICHRA – An Individual Coverage Health Reimbursement Arrangement is a type of HRA. Established in 2020, they allow employers of all sizes to reimburse employees tax-free for individual health insurance and out-of-pocket medical expenses. benafica.com/ichra
Life Insurance – These policies are used to provide financial protection to the survivors of a deceased person. benafica.com/individuals-overview/life-insurance
Long Term Care – Long-term care insurance is a policy that enables a person to pay for nursing home, end of life care and a variety of types of personal care services. benafica.com/individuals-overview/long-term-care
LSA – A Lifestyle Spending Account (LSA) is a benefit provided to employees that reimburses them for a variety of health-related services, such as gym memberships and other activities, health and wellness services and products, mental health help, and more. benafica.com/lifestyle-spending-accounts
Medicare – Medicare is a national health insurance program created for Americans over the age of 65. Part A covers hospital care, Part B is for expenses related to doctors and outpatient care. In 1997, Part C, which combines parts A and B into a single plan administered by private insurance companies, was added. Part D is used for prescription drugs. benafica.com/medicare
QSEHRA – A Qualified Small Employer Health Reimbursement Arrangement allows small employers (50 employees or less) to reimburse their employees tax-free for individual health insurance and out-of-pocket medical expenses. benafica.com/qsehra
TPA – TPA stands for Third Party Administration. An organization that processes insurance claims or certain aspects of employee benefit plans for a separate entity. benafica.com/tpa-services
