With this rider, the initial benefit doesn’t change as it does with the automatic increase rider, but the benefit increases after disability. The purpose of this rider is to keep the insured’s purchasing power even with inflation. For example, with a 3% COLA rider and an initial benefit is $5,000 per month, in year 2 the benefit would increase to $5,150 per month or by the amount of inflation if less than 3%.
Tag: RAW
Cost of living benefit (Health Insurance)
A disability benefit in which the benefit is increased after 12 months and annually thereafter.
Cost of Living Benefits
An option disability benefit where the monthly benefit will be increased annually once the insured is on claim for 12 months.
Cost of Living Index
An index, such as the Retail Prices Index, which measures changes in prices over a period.
Cost of living rider (Life Insurance)
A rider that provides for an increase in benefits due to changes in cost of living. Increases are usually done because of changes in the Consumer Price Index.
Cost of practice index
In the Medicare program, this is a measurement of the differences across geographical areas of the cost of operating a medical practice.
Cost outlier
Typical case that has an extraordinarily high or extremely low cost when compared with most discharges classified to the same diagnosis-related group (DRG).
Cost outlier review
Review by a professional review organization (PRO) for the necessity of a patient’s hospital admission and to determine whether all services rendered were medically necessary. Cost outlier cases are recognized only if the case is not eligible for day outlier status.
cost per gross add (CPGA)
Average amount of money a company spends to acquire one new customer.
Cost plus
1. Health insurance funding in which the insurance carrier does not assume an underwriting risk. The group that is insured pays the costs of benefits (incurred claims), pays administrative costs, and contributes to the insurance carrier’s contingency reserve fund. 2. System of payment for inpatient hospitalization in which total operating costs and certain allowable capital costs are used in determining the per diem (per day) rate. When the amount of payment from a payer becomes insufficient or when uncompensated services are given, providers go to cost shifting and charge extra to the payers who do not exercise strict cost controls. This system is a typical means for providing uncompensated care to the uninsured.