What does it mean when a plan has carved out benefits?

When a plan has carved out benefits, it indicates that certain specific benefits, such as prescription benefits, are excluded from the overall health plan and managed separately. This means that while the main health insurance may cover a wide range of services, the prescription drugs are handled by a different entity or program, which could be a specialized pharmacy benefit manager. This structure can lead to different rules, costs, and coverage conditions for prescriptions compared to other healthcare services, making it crucial for enrollees to understand which aspects of their healthcare are included in their overall plan and which are treated separately.