Glossary

Fail-first
see step therapy
Failure to rescue
Failure to prevent a clinically important deterioration, such as death or permanent disability, from a complication of an underlying illness or of medical care. It provides a measure of the degree to which providers respond to adverse occurrences (e.g., hospital-acquired infections, cardiac arrest, or shock) that developed on their watch.
Federal Employees Health Benefits Program
Public Law 86-382, enacted by Congress on September 28, 1959, created the Federal Employees Health Benefits Program to provide health coverage to federal employees (including members of Congress), annuitants (retirees) and their dependents. The U.S Office of Personnel Management (OPM) has administrative responsibility for the program. Enrollees have a choice of health plans (HMOs, fee-for-service plans) and are given information on both price and performance.
Federal Poverty Level
The official measure of poverty set by the U.S. Government. There are two slightly different versions. The poverty thresholds are used mainly for statistical purposes (for example, preparing estimates of the number of Americans in poverty each year.) The poverty guidelines are a simplification of the poverty thresholds for use for administrative purposes (for example, determining financial eligibility for certain federal programs).
Federal Supply Schedule
The collection of contracts used by federal agencies, U.S. territories, Native American tribes, and other specified entities to purchase supplies and services from vendors. The U.S. Department of Veterans Affairs (VA) negotiates the FSS prices for the pharmaceutical schedule. Those prices are based on the prices that manufacturers charge their "most-favored" nonfederal customers under comparable terms and conditions. The most-favored customer price may not be the lowest price in the market.
Federally Funded Research and Development Center
An entity established by the federal government to meet special long-term research and development needs of a federal government agency that cannot be met effectively by existing in-house or contractor resources. FFRDCs enable federal organizations to use private-sector entities (e.g., industrial firms, universities, nonprofit institutions) to accomplish tasks that are integral to the mission and operation of the sponsoring agency.
Federally Qualified Health Center
A type of provider (as defined by the Social Security Act) that provides comprehensive primary and preventive care (including health, oral, and mental health/substance abuse services) to persons of all ages, regardless of their ability to pay. Includes all organizations receiving grants under Section 330 of the Public Health Service Act (for example, community health centers, migrant health centers, Native American health programs, and rural health clinics).
Fee schedule
A comprehensive list of (maximum) charges or allowances for health services, used to reimburse physicians or other providers on a fee-for-service basis.
Fee-for-service
A payment arrangement under which the health care provider is paid for each service rendered to a patient (as contrasted with salary or per-capita payment, in which the payment is fixed without regard to the number of services actually delivered). It is believed that FFS payment creates incentives to over-treat.
Flexible spending account
A health plan option that allows a portion of employee earnings to be deposited into an annual reserve account on a pretax basis. The employee can use the account to pay for allowable expenses (for example, deductibles and co-payments, vision or dental care, pharmaceuticals, over-the-counter medications, and other expenses that may be unreimbursed from other insurance coverage).
Formulary
A list of approved medications that a health plan (or drug plan) will pay for. Drugs not included in the formulary are not covered unless by exception, or unless the patient is willing to pay an added charge. A formulary may also mandate substitution of generic drugs for brand-name drugs.
Foundation for Accountability
A collaboration of private and public health purchasers and consumer groups that developed outcome measures to allow comparison, by purchasers and consumers, of the quality of care delivered in managed care settings with those in fee-for-service settings.
Functional status
An individual's effective performance of or ability to perform roles, tasks, or activities (for example, to work, to play, to maintain the house). Its often divided into physical, emotional, mental, and social domains, although finer distinctions are possible.

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