first-dollar coverage: meaning, definition, pronunciation and examples
Medium (C1-C2)Formal/Technical
Quick answer
What does “first-dollar coverage” mean?
An insurance or benefit policy where coverage begins immediately, without a deductible that must be paid by the policyholder first.
Audio
Pronunciation
Definition
Meaning and Definition
An insurance or benefit policy where coverage begins immediately, without a deductible that must be paid by the policyholder first.
A type of health or dental insurance plan that pays for eligible expenses from the first dollar of a claim, eliminating out-of-pocket costs like deductibles. Can also refer to a supplemental policy that covers initial expenses before other policies begin.
Dialectal Variation
British vs American Usage
Differences
The term is predominantly American, referring to a feature of US-style private health insurance. In British English, the concept is largely alien due to the NHS, but may appear in discussions of private medical insurance (PMI) as 'no-excess cover' or 'zero-deductible coverage.'
Connotations
In American English, it connotes comprehensive, premium coverage, often with higher premiums. Can be seen as generous (employer-provided) or costly. In British contexts, it's a technical, imported term.
Frequency
Very High frequency in US insurance/benefits contexts. Very Low to negligible in general UK English.
Grammar
How to Use “first-dollar coverage” in a Sentence
[Noun Phrase] + offers + first-dollar coverage + for + [Service][Insurer] + provides + first-dollar coverage + on + [Policy][Employee] + is enrolled in + a first-dollar coverage + planVocabulary
Collocations
Examples
Examples of “first-dollar coverage” in a Sentence
verb
British English
- The policy first-dollar covers all outpatient care.
- We cannot first-dollar cover that procedure.
American English
- Does this plan first-dollar cover ER visits?
- They agreed to first-dollar cover the diagnostic tests.
adverb
British English
- The service is covered first-dollar.
- It pays first-dollar for these drugs.
American English
- Benefits apply first-dollar.
- It kicks in first-dollar after the copay.
adjective
British English
- It's a first-dollar-coverage benefit.
- We reviewed the first-dollar-coverage option.
American English
- She has a first-dollar-coverage plan.
- First-dollar-coverage policies are becoming rarer.
Usage
Meaning in Context
Business
Used in HR and benefits administration to describe premium insurance offerings. Example: 'The new executive package includes first-dollar coverage for dental.'
Academic
Appears in health economics, public policy, and insurance studies discussing moral hazard, plan structures, and healthcare financing.
Everyday
Rare in casual conversation unless discussing specific insurance plan choices. Example: 'My new job has a great plan with first-dollar coverage for prescriptions.'
Technical
Precise term in actuarial science and insurance underwriting to denote policies with no deductible layer.
Vocabulary
Synonyms of “first-dollar coverage”
Strong
Neutral
Weak
Vocabulary
Antonyms of “first-dollar coverage”
Watch out
Common Mistakes When Using “first-dollar coverage”
- Using 'first-dollar coverage' to refer to any good insurance (it's specific to no deductible). Confusing it with 'first-party coverage' (which relates to who is insured). Misspelling as 'first dollar coverage' (hyphenated compound adjective is standard).
FAQ
Frequently Asked Questions
No, it is becoming less common in standard health insurance, especially in the US, due to rising costs. It is more often found in supplemental plans (e.g., dental, vision) or in very premium employer-sponsored packages.
The main disadvantage is significantly higher monthly premiums. Insurers charge more because they assume more financial risk from the very start of a claim.
Yes, the concept can apply to other types of insurance or warranty products where a deductible is normally applied, such as some types of travel insurance or extended appliance warranties, though the term itself is most firmly attached to health benefits.
Not necessarily. It means there is no deductible to meet before coverage begins. You may still have copayments (fixed fees per service) or coinsurance (a percentage of the cost) depending on the specific policy terms.
An insurance or benefit policy where coverage begins immediately, without a deductible that must be paid by the policyholder first.
First-dollar coverage is usually formal/technical in register.
First-dollar coverage: in British English it is pronounced /ˌfɜːst ˈdɒlə ˈkʌvərɪdʒ/, and in American English it is pronounced /ˌfɝːst ˈdɑːlɚ ˈkʌvərɪdʒ/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “Covered from the first dollar”
Learning
Memory Aids
Mnemonic
Think: 'FIRST dollar you spend is already COVERED' → first-dollar coverage.
Conceptual Metaphor
FINANCIAL PROTECTION AS A SHIELD THAT STARTS AT THE BEGINNING (no initial vulnerability).
Practice
Quiz
In which context is the term 'first-dollar coverage' MOST appropriately used?