1. Provisions written into the insurance contract denying coverage or limiting the scope of coverage. They may be specific hazards, perils, or conditions. In connection with a preexisting condition, it means that the policy will not pay benefits arising from that condition. 2. Department of Health and Human Services (DHHS) and Office of the Inspector General (OIG) penalty imposed on a provider that prohibits the individual from billing Medicare or other government programs. 3. In the Medicare program, services not covered such as eye examinations, foot care, eyeglasses, hearing aids, cosmetic surgery, custodial care, and personal comfort items. Medical practices are required to make patients aware of their financial responsibility for noncovered services through waiver of liability statements. Also called exceptions .