Basic health insurance plan that gives limited first-dollar hospital, surgical, or medical benefits as compared with major medical benefit plans that provide comprehensive hospital, surgical, and medical coverage.

Dollar amount assigned to a hospital that assists in adjusting diagnosis-related group (DRG) payment. The base rate takes into account the hospital’s geographic location, status (urban, rural, teaching), and local labor costs.

Value that is determined by taking fees, work, and cost of a group of services or procedures to develop a relative value scale for payment. Also referred to as basic value .

Medicare phrase that means the amount a hospital actually spends to provide care in a prior time period. Usually the base year is the fiscal year that ends on or after September 30, 20XX, and before September 30, 20XX, of the next year.

For Social Security benefits, wage earner’s years after 1950 up to the year of entitlement to retirement or disability insurance benefits. For a survivor’s claim, the base years include the year of the worker’s death.

Insurance plan that combines basic benefits with major medical benefits. Usually this insurance coverage has no front-end deductible and benefits begin with the first dollar of expense incurred by the patient for a covered benefit. Sometimes basic benefits are referred to as “first-dollar” benefits.

Base health services listed in an individual’s health insurance plan plus coverage required under applicable federal and state regulations. Also called basic medical benefits .

Wages paid to an employee excluding overtime, bonuses, and other types of additional compensation. It may or may not include commission income. This financial amount is a way of determining an employee’s benefits and insurance contributions.

1. Insurance protection to offset hospital expenses for an individual. 2. Under Blue Cross and Blue Shield plans, this is coverage exclusive of major medical. 3. For Medicare beneficiaries, basic coverage is Medicare Part A and/or Part B exclusive of any supplemental coverage.

Death benefit in keeping with the terms of the original, basic contract of a life insurance policy, which is equivalent to the face amount. A basic death benefit does not include supplementary riders (e.g., accidental death benefit [ADB] rider). See also death benefit and face amount .