Glossary - C


See Consumer Directed Health Care


See Consumer Directed Health Plan



COBRA (Consolidated Omnibus Budget Reconciliation Act)

A federal act that requires each group health plan to allow employees and certain dependents to continue their group coverage for a stated period of time following a qualifying event that causes the loss of group health coverage (such as reduced work hours, death or divorce of a covered employee, and termination of employment).

Cafeteria Plan

IRS Code section 125 makes it possible for employers to offer their employees a choice between cash, salary, and a variety of non-taxable benefits (qualified benefits). Also known as a Salary Reduction Plan.

Catch-up Contributions

Additional contributions above the maximium Health Savings Account (HSA) contribution limit for individuals who are age 55 or older by the end of the taxable year.

Change of Beneficiary

The HSA owner may change the designated beneficiary of their account at any time. To make this change, the account owner must indicate his/her wishes in writing, with a Change of Beneficiary form.

Civilian Health and Medical Program of the United States (CHAMPUS)



A request for reimbursement from an insurance company or TPA by an insured person of an amount due for a covered service under the terms of the policy (i.e. hospitalization).

Claim Administration

The process of receiving, reviewing, adjudicating, and processing claims, usually by an insurance company or third party administrator.


A method of cost-sharing in a health insurance policy that requires a policyholder to pay a stated percentage of all remaining eligible medical expenses after the deductible amount has been paid.


The flat price an individual pays for services received. Based on an individual’s medical coverage, co-payments are the same dollar amount regardless of the total cost of the service.

Comparable Contributions

In regard to HSA, if an employer contributes to an employee’s HSA, the employer must make comparable contributions to the HSAs of all comparable participating employees. Comparable participating employees are eligible individuals (as defined in section 223 (c) (1)) who are in the same category of High Deductible Health Plan (HDHP) coverage. An employer that fails to make comparable contributions to its employees’ HSAs during a calendar year is subject to an excise tax. Please note, if employees are making pre-tax contributions via payroll deductions, the Section 125 rules apply to both employer funding and employee payroll deductions. See Section 125.

Consolidated Omnibus Budget Reconciliation Act


Consumer Directed Health Care (CDHC)

Refers to certain types of health insurance coverage or plans that allow enrollees to also use personal medical payment products, such as HSAs or Health Reimbursement Arrangements (HRAs) to pay medical expenses directly. Use of these types of plans gives patients greater control over their health decisions.

Consumer Directed Health Plans (CDHP)

Consumer Directed Health Plans typically offer reduced premium costs in exchange for a higher deductible. The purpose of such plans is to involve the insured more directly in the selection and purchasing of healthcare services.


The trend toward consumer-centric healthcare, direct-to-consumer healthcare advertising, and increased consumer healthcare cost sharing.


Funds that are placed into an account.

Covered Expenses

Services for which the health plan makes either a full or partial payment.

Covered Person

Person, and/or their dependents, who is covered by a health carrier and enrolled in its heath plan. Also known as member and plan participant.

Custodial & Deposit Agreement

Describes the terms and conditions between the HSA accountholder and the account custodian, UMB Bank.


In regard to Health Savings Accounts (HSA), a bank or financial institution that holds and safeguards the HSA assets on behalf of the HSA accountholder.


UMB HSA Saver is a unique investment platform designed with ease in mind. Account holders can easily research, buy and sell funds with a couple clicks.

How to Use Receipt Vault Video

How to Use ReceiptVault

Easily track and manage your healthcare receipts using ReceiptVault.

HSA FAQ Resource

Find answers to your most common HSA questions in our comprehensive HSA FAQs section