Description |
description:
Definition: A set of codes used to indicate coverage under a program. A program is an organized
structure for administering and funding coverage of a benefit package for covered
parties meeting eligibility criteria, typically related to employment, health, financial,
and demographic status. Programs are typically established or permitted by legislation
with provisions for ongoing government oversight. Regulations may mandate the structure
of the program, the manner in which it is funded and administered, covered benefits,
provider types, eligibility criteria and
financial participation. A government agency may be charged with implementing the
program in accordance to the regulation. Risk of loss under a program in most cases
would not meet what an underwriter would consider an insurable risk, i.e., the risk
is not random in nature, not financially measurable, and likely requires subsidization
with government funds.
Discussion: Programs do not have policy holders or subscribers. Program eligibles are enrolled
based on health status, statutory eligibility, financial status, or age. Program eligibles
who are covered parties under the program may be referred to as members, beneficiaries,
eligibles, or recipients. Programs risk are underwritten by not for profit organizations
such as governmental entities, and the beneficiaries typically do not pay for any
or some portion of the cost of coverage. See CoveredPartyRoleType.
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