Glossary

HAZMAT is an acronym for hazardous materials or the safety programs instituted to protect the public from exposure to hazardous materials. Various federal agencies have developed regulations regarding the transportation and disposal of hazardous materials, including the Department of Transportation (DOT), the Environmental Protection Agency (EPA), and the Occupational Safety and Health Administration (OSHA). The precise definition of hazardous materials varies depending on the regulatory agency. Truckers, contractors, and other entities must adhere to specific regulations regarding their use, transportation, and disposal of hazardous materials.

A healing plateu, in workers compensation insurance, is the point of maximum recovery from a work injury or illness after which the employee will no longer improve with further treatment.

Healthcare purchasers liability insurance is a type of insurance that protects corporate purchasers of managed healthcare coverage against liability claims made by their employees. Such claims most frequently allege damages sustained as a result of either negligent selection of healthcare providers by the employer or restriction of healthcare provider choice as a consequence of the managed care plan.

A healthcare reimbursement plan is a noninsurance program that allows employees to be reimbursed for uninsured healthcare costs (and in some cases dependent care costs) with tax-free dollars. Formed under section 125 of the US Internal Revenue Code, these accounts are usually funded through payroll deductions, but they can be employer funded.

The Health Insurance Portability and Accountability Act of 1996 is a federal law that affords rights and protections for participants and beneficiaries in group health plans. HIPAA includes (1) protections for coverage under group health plans that would otherwise limit or exclude coverage for preexisting conditions, (2) prohibitions of discrimination against employees and dependents based on their health status, and (3) allowance of a special opportunity for employees to enroll in a new plan, under certain circumstances, known as "open enrollment."

A health maintenance organization is an organization that offers, provides, or arranges for coverage of designated health services needed by plan members under a prepaid per capita or prepaid aggregate fixed-sum basis. Services are provided through contracts and other arrangements into which the HMO enters with healthcare providers. With limited exceptions, persons enrolled in an HMO must receive healthcare benefits through these contract providers or no insurance benefit is provided.

Hearing aid replacement insurance refers to an insurance program that covers the cost of repairing or replacing accidentally lost or damaged hearing instruments.

Hearing care insurance may pay a specified amount toward the purchase of hearing aids (e.g., $1,000) in addition to coverage for an audiologist's exam. In contrast, Medicare and some health insurance plans will pay for the cost of an audiologist's hearing examination required for obtaining hearing aids but will not cover the cost of the hearing aid itself. A few states require some forms of hearing care insurance as part of the health insurance plans offered in their state, including some portion of the hearing aid costs. Some of the states limit hearing aid coverage to apply only to children.

A hedge is a noncorrelating investment designed to minimize known, quantified risk. Catastrophe bonds are used as hedges (albeit imperfect) to help protect insurers against the risk inherent in their catastrophic exposures. Noncorrelating investments are investments that exhibit different risk characteristics from other investments within a portfolio.

A hedge fund is an investment fund that is similar to a mutual fund in some ways. Like a mutual fund, a hedge fund makes pooled investments in various securities that are anticipated to increase in value. However, a hedge fund differs from a mutual fund in two key respects. First, unlike mutual funds, hedge funds "hedge" their investments by also making "short" investments that increase in value when a given security declines in value. Second, unlike mutual funds, which are highly regulated and open to all investors, hedge funds are unregulated and are open only to what are termed "accredited investors." Typically, such investors are defined as institutions (e.g., pension funds or banks) and high-net-worth individuals, given the substantial minimum initial investment levels (e.g., from $1 million to $10 million) hedge funds require.