What does 'washed sperm' mean?
Washing or spinning the sperm is a laboratory technique for separating sperm from semen and separating non-motile sperm from motile sperm.
The ejaculate is mixed with a washing medium followed by centrifugation (spun at high speed). The sperm rich fraction left at the end of this spinning process is mixed with more washing medium and the process repeated 2-3 times until only the highest quality sperm remain. This is then placed into a test tube ready for insemination.

Further Reading:
What does the IUI procedure involve?
When should I have IUI?
Should I get up straight away after IUI?
Is IUI painful?
How & when is sperm collected for IUI?
What are the success rates for IUI?
Is it safe to do IUI at home?
What is DIUI?
Related Articles:
Home Insemination
IVF
Natural Insemination