Benefit: A general term referring to any service (such as an office visit, laboratory test, surgical procedure, etc.) or supply (such as prescription drugs, durable medical equipment, etc.) covered by a health insurance plan in the normal course of a patient's healthcare.

• Defined benefit plans – These plans pay participants a certain amount after they retire. based on years of employment and their salary. • Employee welfare plans or welfare benefit plans – These plans provide medical, health, and hospitalization benefits or income in the event of sickness, accident, or death.

The health care items or services covered under a health insurance plan. Covered benefits and excluded services are defined in the health insurance plan's coverage documents. In Medicaid or CHIP, covered benefits and excluded services are defined in state program rules.

Benefits are the health services your insurance pays for. As part of healthcare reform, California law states that there must be a minimum set of benefits in most health insurance policies.