Terminology used on the insurance exchanges

Insurance terminlogy is tough enough to follow when used by official government and industry sources. But the insurance exchange introduces a new range od terms introduced by consumers and public media. Some terms help  with out understanding. Others blur the distinctions, either intentionally or unintentionally. Some terms are prurely spin, used for political purposes to sway public opinion about a specific iissue.

Gap insurance

Generally refers to short term medical insurance used to cover the period of time between group health insurance plans. The primary benefit of temporary insurance, aside from providing immediate protection for unexpected medical bills, is the reservation of "continuous coverage" under the laws that prevent a new member from incurring a waiting period before coverage is provided for pre-existing medical conditions.

Limited major medical insurance

A potentially confusing term that combines the concept of limited benefit insurance with major medical insurance. Since all major medical insurance has limitations on coverage in the form of deductibles, co-payments, co-insurance, uncovered charges and other mechanisms, this term simply refers to the fact that some medical expenses are not covered by insurance.