INSURECO EDITORIAL · UPDATED APRIL 30, 2026

Insurance Glossary

Plain-English definitions of the Medicare, ACA health, and life insurance terms most consumers ask about. Each definition is reviewed by a licensed insurance professional. Cross-linked from across our editorial content so you can read in context.

Browse by category: Medicare Health Insurance Life Insurance All terms
Health

ACA Marketplace

Healthcare.gov and state exchanges where you buy ACA-compliant individual health insurance.

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Children's Health Insurance Program (CHIP)

Federal-state program for children whose families exceed Medicaid income limits but can't afford private coverage.

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COBRA

Federal law allowing 18-36 month continuation of employer health coverage after a qualifying event — at full cost.

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Coinsurance

Percentage of cost you share with insurance after meeting your deductible.

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Copay

Fixed dollar amount you pay for a covered service ($25 for office visit, $10 for generic Rx, etc.).

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Cost-Sharing Reduction (CSR)

Silver-plan-only ACA subsidy that lowers deductibles, copays, and out-of-pocket max for households under 250% FPL.

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Deductible

Amount you pay out-of-pocket before insurance starts paying.

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Essential Health Benefits (EHB)

10 categories of services every ACA-compliant plan must cover.

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Federal Poverty Level (FPL)

Annual income benchmark used to determine eligibility for ACA subsidies, Medicaid, and other programs.

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High-Deductible Health Plan (HDHP)

ACA-compliant plan that meets IRS deductible/OOP-max thresholds and qualifies for HSA contributions.

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HMO (Health Maintenance Organization)

Health plan with closed network and primary care gatekeeper for specialist referrals.

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Health Savings Account (HSA)

Triple-tax-advantaged savings account paired with HDHP — for medical expenses now or later.

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ICHRA (Individual Coverage HRA)

Employer reimburses employees tax-free for individual ACA marketplace coverage instead of offering a group plan.

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Medicaid

Federal-state low-income health coverage — income limits for adults vary by state expansion status.

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Metal Tiers (ACA)

ACA plan classifications by cost-sharing — Bronze, Silver, Gold, Platinum.

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Modified Adjusted Gross Income (MAGI)

Income measure used for ACA subsidies, Medicaid eligibility, and Medicare IRMAA.

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Open Enrollment (ACA)

Annual window to enroll in or change ACA marketplace plans — Nov 1 to Jan 15 federally.

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PPO (Preferred Provider Organization)

Health plan with broader network and out-of-network coverage at higher cost-sharing.

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Premium Tax Credit (APTC)

Federal subsidy that lowers your monthly ACA marketplace premium based on income.

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Self-Employed Health Insurance Deduction

Above-the-line deduction for self-employed health insurance premiums — Form 1040 Schedule 1.

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Short-Term Medical Insurance

Non-ACA-compliant temporary health coverage — useful as a stopgap, problematic as a permanent solution.

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Special Enrollment Period (ACA SEP)

60-day window to enroll in or change ACA marketplace coverage outside Open Enrollment, triggered by a Qualifying Life Event.