Fidelity bond: A bond that reimburses an employer, up to the stated amount, in the event that an employee commits a dishonest act covered by the bond. Also known as employee dishonesty coverage. A nonprofit can purchase a fidelity bond as a stand alone or part of a crime coverage package.

First dollar coverage: A feature of an insurance plan in which there is no deductible, and therefore the plan's sponsor pays a proportion of all of the covered services provided to a patient as soon as he or she enrolls.

Flexible spending accounts (FSA): Allows employees to have money withheld from their paychecks on a pre-tax basis to cover qualified medical and dependent care expenses.

Formulary: A preferred list of commonly used drugs selected by an insurance carrier to meet a patient's needs.

Formulary: The panel of drugs chosen by a hospital or managed care organization that is used to treat patients. Drugs outside of the formulary are not used, unless in rare, specific circumstances.