Question

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

a) No deductible payment is required
b) Deductible specified in the contract is payable by the insured
c) Insured must pay a percentage of covered losses
d) An initial deductible plus a percentage of the remaining covered loss is owed by the insured

Answer 1

First dollar coverage in a major medical plan eliminates the requirement for the insured to pay a deductible, allowing the insurance benefits to be paid from the very first incurred expenses. the correct option is b) Deductible specified in the contract is payable by the insured .

Step-by-step explanation:

When an insured has a major medical plan with first dollar coverage, the impact on the benefits paid is that no deductible payment is required. First dollar coverage means that the insurance company starts paying out benefits from the first dollar of incurred medical expenses, making it unnecessary for the insured to pay a deductible before coverage kicks in.

Typically, insurance policies include deductibles, copayments, or coinsurance. Deductibles are out-of-pocket expenses that the insured must pay before the insurance company contributes towards the costs. Copayments are fixed fees for services, and coinsurance is a system where the insured pays a certain percentage of the cost.

An insured with a major medical plan with first dollar coverage means that no deductible payment is required. This means that the insured does not have to pay any out-of-pocket expenses before the insurance company starts paying benefits. Instead, the insurance company covers the entire bill from the beginning.