Certified Revenue Cycle Representative (CRCR) Practice Exam

What is a key benefit of first dollar coverage policies?

1. Reduced administrative costs for health plans

2. No out-of-pocket costs for the insured at the start of care

3. Limitations on service accessibility

4. Reduction in unnecessary medical interventions

The correct answer is: No out-of-pocket costs for the insured at the start of care

First dollar coverage policies are designed to provide benefits right from the outset without requiring the insured to pay a deductible or co-payment at the beginning of care. This means that individuals can access necessary health services without any financial barriers at the start of treatment. By eliminating out-of-pocket costs initially, these policies encourage patients to seek medical attention when they need it, potentially leading to better health outcomes and preventive care usage. This aspect of first dollar coverage helps promote a proactive approach to health management since individuals are more likely to utilize healthcare services without the anxiety of financial implications, ultimately supporting better overall population health. As a result, patients can receive timely interventions without financial hesitation, which is a significant advantage of this type of insurance coverage.