Glossary of Key Terms

Actuarial value: On average, the percentage of your total costs paid by your health plan.

Affordable Care Act (ACA): A law passed in March 2010. Also called the health care reform law and Obamacare. It contains hundreds of provisions, but most importantly, it requires all Americans to have health insurance coverage, most employers to provide coverage and changes the structure of insurance plans in terms of what they have to cover.

Affordable coverage:  To be considered affordable, your premium for single coverage (not the cost to cover your family—that’s important) must be affordable and cannot be more than 9.5 percent of your total household income. 

Essential health benefits: A list of health services that plans in the exchanges, including the individual and small group fully-insured must cover. Essential benefits include (but are not limited to) emergency care, prescription drugs, maternity and newborn care, mental health and substance abuse services, preventive and wellness care and pediatric services including dental and vision care. Our plans help you pay for essential health benefits and other valuable medical services.

Individual mandate: Part of the Affordable Care Act that requires all Americans to have health insurance that is minimum essential coverage or pay a fine or tax. The rule goes into effect January 1, 2014. There are specific rules about what kind of plan you’re required to have, whether or not you can get help paying for your plan and the fine or tax for not having one.

Minimum essential coverage: Many forms of health coverage, including medical coverage available from NetApp or through a marketplace will meet the ACA’s definition of minimum essential coverage.  NetApp offers you affordable, minimum essential coverage.

Minimum value: Your plan must help pay for at least 60 percent of the total allowed costs under your NetApp medical plan.

Premium tax credit: A cash advance to help cover part of the cost of health insurance through a state exchange. An American who does not have coverage meeting the minimum value requirement or does not have affordable coverage through their employer, and has a total household income below 400 percent of the poverty level is eligible for a premium tax credit. The credit amount is determined by family size, household income and the cost of plans in the individual’s state exchanges. If you’re benefits-eligible, your access to NetApp coverage means you’re not eligible for a premium tax credit. If you’re not eligible for NetApp benefits, start by visiting healthcare.gov.

Qualified health plan: State exchanges must review and certify all plans sold in their marketplace. These are referred to as qualified health plans. All plans must cover the minimum essential benefits. Plans may have different features—like the amount of the deductible or the copay—but the overall value of the plan must equal one of the four standard levels of coverage:

Lastly, a qualified health plan must also maintain a network of providers that has enough hospitals, doctors, mental health providers and other health care providers, and make sure that all services are “accessible without reasonable delay.” If NetApp’s plans were available through the marketplace, all of them would be at least Gold level plans.

State exchange: Part of the Health Insurance Marketplace where people can shop for and purchase health insurance online. Think of a mall, but where all the stores sell health insurance. (See more about what state exchange can do.) Behind the scenes, the exchange is managed by a board that makes decisions about how to run it, including bringing in outside partners who can perform some the exchange’s functions. One member of each board must be a consumer advocate.

Subsidy: See premium tax credit.