In Basic Medical Expense plans, the term First Dollar means which of the following?

• A. No deductible is required
• B. A deductible applies before benefits
• C. Co-insurance applies after deductible
• D. Maximum out-of-pocket limit is waived

Answer: (A)

First dollar coverage means there is no deductible to satisfy before benefits begin. The plan starts paying from the first dollar of covered medical expenses, so you don’t have to pay upfront to trigger benefits. You may still have copayments or coinsurance for specific services depending on the plan, but there’s no deductible to meet. The other statements describe situations that involve a deductible, coinsurance after a deductible, or other features not tied to the idea of paying from the first dollar.