Explain the term "summary of benefits and coverage" (SBC).

The term "summary of benefits and coverage" (SBC) refers specifically to a document created to give consumers an easy-to-understand outline of a health plan's key features and benefits. This includes essential information about what services are covered, the cost-sharing structure (such as deductibles, copayments, and coinsurance), the overall limitations, and any exclusions that may apply.

The SBC is designed to be a standardized document, enabling consumers to compare different health insurance plans more effectively. This document helps individuals make informed choices about their health coverage, ensuring clarity regarding what is included in the plan and what they will need to pay out of pocket.

In contrast, other options do not encapsulate the essence of the SBC. While a report detailing annual expenses might be helpful, it does not provide the specific outline of benefits and coverage. A summary of healthcare services would lack the context of coverage specifics and potential costs. Lastly, an overview of the insurance claims process, while informational, is not related to a summary of coverage or benefits, which is the core focus of the SBC.