Health Insurance Glossary – B Terms
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
B
Benefit
The amount payable by an insurance company to, or on behalf of, a policyholder or beneficiary when the insured incurs a loss.
Brand-name Drug
A medical drug marketed by a company under a specific and often well-known brand name. The pharmaceutical company marketing the drug usually owns the patent for the drug. If the patent has expired, or no patent ever existed for the drug, other companies may also manufacture and market an equivalent version of the drug known as a generic drug.
The generic version of the drug should have the same active ingredients and be just as effective as the brand-name drug.
Brand-name drugs are often more expensive than their generic equivalents, therefore many health insurance plans provide incentives to use generic drugs.
If your insurance policy does not provide coverage for prescription drugs, be sure to ask your doctor if a lower-cost generic version of the drug is available. If a prescription from your doctor doesn't distinguish between the brand-name drug and the generic version, be sure to ask your pharmacist if a lower-cost generic version is available.
At times your doctor may not prescribe the generic version, and in these situations you should trust their professional advice. It may be that certain generic drugs have different inactive ingredients and your doctor wants to avoid giving you a particular ingredient.
Broker
An insurance salesperson who obtains quotes from multiple insurance companies and assist clients in selecting an insurance policy. Because an insurance broker is paid a commission by the insurance company, the broker does not usually charge clients a fee for their services.
