Glossary

  • Coinsurance: How you and your medical plan share costs after you meet the plan’s annual deductible (if applicable). For example, your plan may cover 80% of charges for a covered hospitalization, leaving you responsible for the other 20%. This 20% is known as your coinsurance.
  • Copay: A fixed amount (for example, $20) you pay for a covered health care service, usually when you receive the service. The amount can vary by the type of service you receive.
  • Deductible: The amount you owe for health care services before your plan begins to pay. For example, if your annual deductible is $3,000, your plan won’t pay anything until you’ve reached that amount first. The exception is preventive care, which is fully covered so you pay nothing.
  • Dependent Care Flexible Spending Account (FSA): You may choose to enroll in this account to pay for eligible dependent care expenses — including child and elder care — with tax-free dollars. You contribute to your FSA through automatic, pre-tax payroll deductions. The Dependent Care FSA has a “use it or lose it” rule, meaning that any money left in your account at year-end is forfeited. For a full list of eligible expenses, refer to IRS Publication 503.
  • Health Care Flexible Spending Account (FSA): You may choose to enroll in this account to pay for eligible health care expenses — including deductibles, coinsurance, and copays for medical, dental, and vision care — with tax-free dollars. You contribute to your FSA through automatic, pre-tax payroll deductionsat the same time, but you may participate in both a Limited Purpose FSA and an HSA. For a full list of eligible expenses, refer to IRS Publication 502.
  • Health Savings Account (HSA): A tax-free savings account that is only available to participants in a qualified high-deductible health plan, such as the CDHP. You contribute to your HSA through pre-tax payroll contributions and can use the money to pay for eligible medical expenses — including deductibles, coinsurance, and copays for medical, dental, and vision care. Unlike a Flexible Spending Account (FSA), all of the money in your HSA rolls over from year to year and is always yours to keep. For example, you may use the money in your HSA to pay for eligible health expenses in retirement. For a full list of eligible expenses, refer to IRS Publication 502.
  • Limited Purpose Flexible Spending Account (FSA): Available to CDHP participants only, this FSA is designed to work together with your HSA to provide additional tax-saving opportunities. This account can be used on eligible dental and vision expenses only, as well as post-deductible medical expenses.
  • Out-of-pocket maximum: Protects you financially by capping the amount you’ll pay in a plan year for covered health expenses. If you reach your medical plan’s out-of-pocket maximum, your plan pays 100% of covered services for the rest of the year.
  • Premiums: A fixed amount that you automatically contribute from each paycheck for coverage under a medical plan. Premiums can vary widely by the type of plan you choose. See your premiums for 2021.
  • Preventive care: In-network preventive care is fully covered under all of the Sonos medical plans, so you pay nothing. Preventive care includes routine care designed to prevent illness or disease, including annual physicals, recommended immunizations, and routine cancer screenings. If the same tests are done to diagnose an illness or treat a known condition, they are not considered preventive care and your plan's normal charges will apply.