Which statement about First Dollar coverage is true?

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

Answer: (A)

First-dollar coverage means the insurer pays for covered expenses from the very first dollar spent, so you do not have to meet a deductible before benefits kick in. That’s why the statement that no deductible is required is true. You might still have co-pays or coinsurance for certain services, and there is usually some maximum out-of-pocket limit, but the deductible itself does not apply under first-dollar coverage. The ideas that a deductible would apply before benefits, or that coinsurance would occur only after a deductible, or that the maximum out-of-pocket limit would be waived, don’t align with first-dollar coverage.