Health Insurance Glossary

TEFRA (Tax Equity and Fiscal Responsibility Act of 1982)
Requires employers with 20 or more employees to offer active employees and their spouses aged 65-69 the same level of health care benefits offered to younger employees. These employees will have their regular group coverage as primary and Medicare as secondary.
Termination Date
The date indicated in an insurance contract as the date coverage expires.
Three-Tier Prescription Drug Benefit
A benefit option in which a member pays a lower copay for generic drugs (Tier 1), a higher copay for preferred brand name drugs (Tier 2) and the highest copay for non-preferred brand name drugs (Tier 3). See Formulary.
Traditional Insurance
See Fee-for-Service Plans.