Definition of carveout in US English:

noun

• 1A small company created from a larger one.

  ‘companies that are breaking up—through spin-offs, split-offs, and carveouts’

  1. 1.1 A class of medical procedures treated separately with regard to insurance coverage.
     Example sentences

     • ‘‘I have had the opportunity to observe both public and for-profit managed care, especially when it comes to mental health carveouts,’ she said.’
     • ‘The system of mental health carveouts should be challenged.’
     • ‘Texas' NorthSTAR program is a managed care mental health carveout that serves Medicaid and medically indigent patients in Dallas and six adjacent counties.’
     • ‘In the early days of carveouts, the medical profession watched them with a wary - if trusting - eye.’
     • ‘Sturm showed that continuing declines in health care costs under behavioral health carveouts are related to the maturing of a plan.’
     • ‘The behavioral health carveout will most likely be the dominant way of managing those benefits.’
  2. 1.2 A class of employees treated separately with regard to benefits.

• 2The activity of effecting a carveout.

  Example sentences

  • ‘A 2 percentage point carveout of Social Security taxes to fund private accounts?’
  • ‘‘Carveouts are here in full force,’ said Greenberg. ‘It's better to work with us than to make a statement that carveouts are bad and then just leave.’’
  • ‘In the spiral that operated in respect of WC [Workers' Compensation] carveout and related business, losses were inevitable year in, year out.’