First dollar coverage

Also found in: Medical.

First Dollar Coverage

An insurance policy where the insurer pays for all expenses once an insured event occurs. There is usually a (high) maximum amount limiting first dollar coverage, but the policy does not include a deductible, coinsurance, or anything else; the insurer is responsible for all expenses up to that maximum amount. Because these plans carry more risk for the insurer, first dollar coverage comes with higher monthly premiums. First dollar coverage is available for many types of insurance, whether it is homeowner's insurance, car insurance, health insurance, or something else.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
One reason for this is that, in some cases, courts have held that insurers must drop down and give first dollar coverage in situations where insolvent insureds cannot meet their retention obligations.
Employees in areas where a managed health care program cannot be established would retain "first dollar coverage.
If you lead a healthy life style, are fortunate enough to have healthy parents, and are willing to forego first dollar coverage, you may be able to get good coverage at a reasonable price.
The only problem with this comparison is that auto insurance minimums are typically sold with a $500.00 deductible, and no or very little first dollar coverage and a 300k or 500k per incident maximum compared to that of the essential minimum U.S.
* Plans must provide first dollar coverage for preventative care.
For many, first dollar coverage has now become a luxury they cannot afford.