Why are the basic types of coverage (medical, surgical, hospital) referred to as first dollar coverage?

The term "first dollar coverage" indicates that the insurance benefits begin to pay from the first dollar of covered expenses without the insured having to meet a deductible. This type of coverage is appealing because it provides immediate financial assistance as soon as a medical service is utilized. In the context of basic types of coverage like medical, surgical, and hospital insurance, the absence of a deductible means that insured individuals can access care without having to pay out of pocket up to a certain threshold.

This contrasts with other coverage types that may require a deductible before benefits kick in, which can delay access to necessary services and create a financial burden at the outset. First dollar coverage is particularly beneficial in situations where immediate care is essential, as it eliminates the need for upfront costs, ensuring that individuals can seek treatment without financial hesitation.