What is a beneficiary?
A beneficiary is a person or organization that is entitled to receive benefits from a benefactor. Legal and financial documents typically require a beneficiary to be listed.
For example, when a person enrolls in a retirement plan or creates a will, they will name a beneficiary who will receive profits or other benefits, typically on the death of the benefactor.
In healthcare, a beneficiary can refer to individuals who receive health insurance through a private health plan, Medicare or Medicaid.
Why are beneficiaries important to healthcare?
Beneficiaries are important because they indicate which individuals under a health plan are eligible for certain services, like coverage for prescription drugs, hospital insurance and medical insurance.