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First dollar coverage

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First dollar coverage. First dollar coverage means that your health insurance plan typically begins to pay its share of your covered services from the first service you receive in the plan network. In a fee-for-service plan, payments for covered services begin as soon as you have met the deductible.



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The IRS previously authorized a transition rule permitting first dollar coverage of all prescription drugs until January 1, 2006.
They are offered with $500 and $750 first dollar coverage amounts (this is the amount the plan will pay for expenses up front).
First Dollar Coverage Plans feature the insurance carrier covering most of the employee's healthcare expenses, up to a certain amount.
 
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