Certified Revenue Cycle Representative (CRCR) Practice Exam

In the context of health insurance, what is the primary focus of first dollar coverage?

1. Cost containment for healthcare providers

2. Immediate coverage without deductibles

3. Payment structures for preventive care

4. Encouraging higher premiums

The correct answer is: Immediate coverage without deductibles

First dollar coverage primarily refers to a type of health insurance plan that provides benefits for healthcare services from the very first dollar spent, without requiring the insured to first meet a deductible. This means that the policyholder can receive care and have it covered by the insurance right away, without any out-of-pocket expenses until additional costs are incurred, if applicable. This approach is particularly appealing because it eliminates financial barriers for patients seeking medical attention. As soon as a patient incurs eligible medical expenses, the insurance begins to pay for those expenses immediately, which encourages individuals to seek necessary healthcare services without hesitation due to cost concerns. The other options focus on aspects such as cost containment for providers or structures for preventive care, which, while important, do not directly address the foundational principle of first dollar coverage that emphasizes immediate financial coverage starting from the first expense incurred.