Basic Medical Expense insurance policy is commonly referred to as which term?

• A. First Dollar
• B. Major Medical
• C. Comprehensive Medical
• D. Hospital Indemnity

Answer: (A)

Understanding how benefits are paid helps here. First-dollar coverage means benefits are paid from the very first dollar of covered expenses, with little or no out-of-pocket costs to start receiving benefits. A Basic Medical Expense policy is designed to provide limited, straightforward benefits for routine medical services and hospital costs without requiring the insured to meet a deductible first, so it’s described as first-dollar coverage.

This differs from major medical or comprehensive plans, which typically involve deductibles and coinsurance and are designed to cover more substantial, catastrophic costs. Hospital indemnity, on the other hand, pays a fixed daily amount for hospital confinement and isn’t tied to the actual charges for services, so it isn’t considered first-dollar medical expense coverage.