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

When an insured has a major medical plan with first dollar coverage, it means that the policy begins paying benefits from the very first dollar of covered expenses without the insured having to meet a deductible. This feature is particularly beneficial as it provides immediate coverage for medical costs, allowing the insured to access necessary healthcare services without the burden of upfront out-of-pocket costs that would typically be required with a deductible.

In contrast, plans that require a deductible would only start covering expenses after the insured has paid a certain amount out-of-pocket. Copays are fixed amounts the insured must pay for specific services, which would not apply in a first dollar coverage situation where no initial costs are borne by the insured. Additionally, any waiting period would imply that the benefits begin after a specific time frame, which does not align with the concept of first dollar coverage, where benefits are available right away. Therefore, the nature of first dollar coverage directly eliminates the requirement for a deductible payment.