First-Dollar coverage

First-dollar coverage in insurance refers to a type of insurance policy where the insurer agrees to cover the entire cost of the claim without requiring the policyholder to pay any deductible or coinsurance amount. In other words, the policyholder is not responsible for any out-of-pocket expenses before the insurer starts paying.

An example of first-dollar coverage is a health insurance policy that covers routine medical check-ups and preventive services such as vaccinations, without requiring the policyholder to pay any deductible or coinsurance amount. The insurer covers the full cost of the service, and the policyholder does not have to pay anything out-of-pocket.

Key features of first-dollar coverage include:

• No deductible: The policyholder is not required to pay any deductible amount before the insurer starts paying for covered claims.

• No coinsurance: The insurer covers the entire cost of the claim, without requiring the policyholder to pay any coinsurance amount.

• Higher premiums: First-dollar coverage policies typically have higher premiums compared to policies that require the policyholder to pay a deductible or coinsurance amount.

• Limited coverage: First-dollar coverage policies may have limitations on the types of services or claims that are covered without a deductible or coinsurance amount.

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