H

“H”

Hardship withdrawals
One of the benefits of a 401(k) plan versus other plans, which permits the withdrawal of funds from a 401(k) plan if the employee has one a group of stipulated needs.
Health insurance purchasing cooperative (HIPC)
An organization to purchase health insurance on behalf of smaller employers in its regional area, thus implementing a proposed form of managed competition.
Health maintenance organization (HMO)
An organization that provides a wide range of comprehensive health care services for a specified group for a fixed periodic payment. The HMO can be sponsored by government, medical schools, hospitals, employers, labor unions, consumer groups, insurance companies, and hospital medical plans. As a member of an HMO you pay a set fee each year for a package of services. The HMO contracts with health care providers, and these providers make up the HMO’s network. You must see providers in the network to be reimbursed for the cost of your care. Also, you must select a PCP to coordinate your care, and you need approval from your PCP to see a specialist.
Highly compensated employees
A term originally defined by the Tax Reform Act of 1986, highly compensated employees are generally those who (1) owned 5 percent or more of the employer at any time during the year, (2) earned more than a specified amount (indexed) from the employer, (3) earned more than a specified amount (indexed) and were among the top-paid employees, or (4) were officers of the company and met other parts of the definition. The definition has since been modified by subsequent laws.
HMO
See health maintenance organization.
Home leave
A periodic leave in the home country for overseas employees and their dependents.
Hospice
Health care facility providing medical care and support services, such as counseling, to terminally ill people.
Hospital expense insurance
Health insurance protection against the cost of hospital care resulting from the illness or injury of the insured person.
Hospital indemnity
A form of health insurance that provides a stipulated daily, weekly, or monthly indemnity during hospital confinement. The indemnity is payable on an unallocated basis without regard to the actual expense of hospital confinement.
Hospital medical insurance
A term used to indicate protection that provides benefits for the cost of any or all of the numerous health care services normally covered under various health care plans. 

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