Reason subsequent to the primary diagnosis for an office or hospital encounter that may contribute to the condition or define the need for a higher level of care but is not the underlying cause. There may be more than one secondary diagnosis. See other diagnoses .

Patient’s medical problem resulting from the location of his or her work environment, but the condition does not originate from the job.

Second insurance plan identified through coordination of benefits (COB) that has the responsibility to pay if there are benefits pending after the first insurance company has sent the provider or patient reimbursement for the medical services. Also called secondary carrier or secondary insurance .

1. Insurance carrier that reimburses the residual balance of the insurance claim after the primary insurance has paid its benefits. 2. When Medicare is the secondary payer (MSP), the primary insurance plan of a Medicare beneficiary must pay for any medical care or services first before Medicare is sent a claim. MSP may involve aged or disabled patients who are under group health plans and cases related to workers’ compensation, automobile accident, medical no-fault, and liability insurance. For a Medicare patient suffering from end-stage renal disease (ESRD), MSP is the payer for the first 30 months that the beneficiary is entitled to benefits.

Federal statute that qualifies the death benefit paid under a life insurance policy is received by the beneficiary of the policy income-tax free.

Federal statute allows taking proceeds from one life insurance policy or annuity and reinvesting the funds immediately in another life insurance policy or annuity of the same type without having to pay tax on any profit. Sometimes referred to as a Section 1035 Exchange .

Federal statute that employers receive a 100% tax deduction for reimbursement to eligible employees for health care expenses paid by those employees and reimbursed by the employer (e.g., premiums and noninsured medical expenses).

Federal statute that permits the self-employed a 100% tax deduction for the family health care expenses to include premiums related to health insurance, disability income insurance, and long-term care insurance. A 100% deductible is also allowed for noninsured medical, dental, and vision care expenses.

Federal statute that an employer may maintain a separate written plan for employees that meets specific requirements and regulations and provides participants an opportunity to receive certain benefits on a pretax basis. Also known as cafeteria plan . Participants in a cafeteria plan must be permitted to choose among at least one taxable benefit (such as cash) and one qualified benefit. A qualified benefit is a benefit that does not defer compensation and is excludable from an employee’s gross income under a specific provision of the Code, without being subject to the principles of constructive receipt. Qualified benefits include accident and health benefits (but not Archer medical savings accounts or long-term care insurance); adoption assistance; dependent care assistance; group-term life insurance coverage; health savings accounts including distributions to pay long-term care services. The written plan must specifically describe all benefits and establish rules for eligibility and elections. A section 125 plan is the only means by which an employer can offer employees a choice between taxable and nontaxable benefits without the choice causing the benefits to become taxable. A plan offering only a choice between taxable benefits is not a section 125 plan. Employer contributions to the cafeteria plan are usually made pursuant to salary reduction agreements between the employer and the employee in which the employee agrees to contribute a portion of his or her salary on a pretax basis to pay for the qualified benefits. Salary reduction contributions are not actually or constructively received by the participant. Therefore those contributions are not considered wages for federal income tax purposes. In addition, those sums generally are not subject to FICA and FUTA.