H

Hail Insurance. See Crop-Hail Insurance.

Hard Insurance Market. The period of the property-casualty insurance market cycle that is characterized by a shortage of capital and a lack of competition, causing price increases and decreased availability of coverage in certain lines of business. The last hard insurance market in the United States occurred from 1986 to 1987.

Hazard. A condition that creates or increases the chance of a loss.

Health Care Financing Administration (HCFA). The federal agency within the Department of Health and Human Services (HHS) that administers Medicare, and that is charged with overseeing and approving states' implementation and administration of Medicaid.

Health Care Prepayment Plan (HCPP). A type of Medicare private managed care plan, provided for under TEFRA, that generally works like a cost HMO, but covers some or all Medicare Part B (physician) services, with Medicare covering the rest.

Health Insurance. A form of insurance that pays for treatment for covered illness or injury.

Health Insurance Association of America (HIAA). A Washington, DC-based trade organization representing health insurers.

Health Maintenance Organization (HMO). A health plan that offers comprehensive health coverage to its members for both hospital and physician services for a fixed fee (an amount per member per month), with a small amount collected at the time of each visit. An HMO contracts with health care providers, e.g., physicians, hospitals and other health professionals, and members are required to select a primary care physician from among the network providers, and to use network providers for all health services. Model types include staff, group practice, network and IPA (see separate definitions).

Health Plan Employer and Data Set (HEDIS). A set of performance measures designed to standardize the way health plans report data to employers. HEDIS currently measures five major areas of health plan performance: quality, access and patient satisfaction, membership and utilization, finance and descriptive information on health plan management.

Highly Protected Risk (HPR). A building or other structure of superior construction, designed to be much less susceptible to loss than a standard building, as a result of a commitment to risk management.

HMO. See Health Maintenance Organization.

Hold Harmless Clause. A clause frequently found in managed care contracts whereby the HMO and the physician hold each other not liable for malpractice or corporate malfeasance if either of the parties is found to be liable. Many insurance carriers exclude this type of liability from coverage. It also may refer to language that prohibits the provider from billing patients if their managed care company becomes insolvent. State and federal regulations may require this language.

Home Office. The headquarters of an insurer.

Homeowners Insurance. A form of insurance that provides coverage for damage to residences and their contents from a broad range of perils, including fire, lightning, windstorm and theft. Personal liability insurance coverage also is provided. Also known as Homeowners Multi-Peril.

Hospice. A residential health care facility that provides medical care and support services to terminally ill patients and counseling to their families.

HPR. See Highly Protected Risk.

HR-10 Plan. See Keogh Plan.

Hull Coverage. Insurance covering damage to a vessel or aircraft but not to its contents or cargo.

Hurricane. A tropical storm with wind velocity in excess of 75 miles per hour.

Hybrid Pension Plan. A type of defined benefit plan that mimics some of the characteristics of defined contribution plans. The most popular of these plans are cash balance plans and pension equity plans.