HR Glossary

Carve-Out

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Carve out definition

Carve out is a term which refers to the elimination of coverage of a specific category of benefit services, most commonly medical services which are not included in a standard health insurance contract and are paid for separately, like vision care, dental care, mental health cover or prescription drugs.

what-is-carve-out

Carve out definition

Carve out is a term which refers to the elimination of coverage of a specific category of benefit services, most commonly medical services which are not included in a standard health insurance contract and are paid for separately, like vision care, dental care, mental health cover or prescription drugs. The employer generally opts out of certain services with one vendor and contracts another to deliver them.

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