Type of defined benefit plan in which each person participating has an account that is credited with amounts that reflect the employer’s contributions and reflect investment interest. The balance in the account is called the participant’s accrued benefit. When the participant retires, he or she may receive the full account balance in a lump sum if the benefits are fully vested or may use the account balance to purchase an annuity.

Insurance that provides coverage for earthquake, flood, hailstorm, hurricane, nuclear accident, riot and civil commotion, tornado, and volcanic eruption. Some homeowners’ policies cover some of these catastrophes.

Term that refers to an illness that has the potential to financially ruin an individual or his or her family because of the high cost of medical care.

Maximum dollar amount that an active-duty family member has to pay out of their pocket under TRICARE for covered medical services in any fiscal year or enrollment period.

Severe medical injury or prolonged illness where the total cost of treatment will exceed the amount specified in the managed care contract.

Ongoing review of cases that involve patients who encounter catastrophic or very high medical expenses. Sometimes referred to as large case management. See case management.

Request for health benefits coverage for a case of severe injury or prolonged illness where it is foreseen that there may be very high medical expenses involved.

1. Health benefit insurance policy that offers minimal coverage for medical expenses under a specific level such as $10,000 a year but gives coverage for severe and prolonged chronic illness or injury that may cause the patient difficult financial hardship. Generally there is no maximum amount of coverage for this type of plan, but there may be some coinsurance. 2. Under a Medicare Part D plan, the name for the step in which the plan pays nearly all of the patient’s drug expenses until the end of the year, with no upper limit. The patient pays only a small share of the drug expenses (approximately 5%). Also called catastrophic insurance, catastrophic health insurance, catastrophic plan, or major medical.

Medical services for a patient who has suffered a severe injury or has a long-term illness that may substantially diminish a family’s income and resources.