Question

"When an insured has a major medical plan w/first dollar coverage, how does this impact the benefits paid?"

a) Benefits are reduced

b) No impact on benefits

c) Benefits are increased

d) Benefits are delayed

Answer 1

In a major medical plan with first-dollar coverage, the benefits are paid out immediately without the insured having to meet a deductible, thus not impacting the total benefits but allowing immediate access to insurance funds.

Step-by-step explanation:

When an insured has a major medical plan with first-dollar coverage, it means that the benefits are paid from the first dollar of incurred medical expenses without the insured having to pay a deductible. This is different from traditional plans, where policyholders must pay out-of-pocket up to the deductible before the insurer pays. Therefore, the correct answer to the question is that benefits are not impacted by the deductible, as there is none. Instead, the insured enjoys immediate coverage of their healthcare costs from the first dollar spent. However, this type of coverage does not inherently increase the total benefit paid out; it simply changes how and when the benefits are accessed by eliminating the initial out-of-pocket expenditure.