Carve out

The method used to determine the benefits that are paid under a patient's contract when Medicare Part A, Medicare Part B or a liability insurer are primary and the patient has benefits that correspond to the basic benefits for all members of the patient's group. BCBSKS will compare Medicare's coverage and reimbursement to their coverage and reimbursement and will make additional payments as appropriate.

or

To separately purchase services that are typically part of a managed care package. For example the HMO may "carve out" the vision care benefit and select a specialized vendor to supply these services on a stand-alone basis.