Individual First Dollar coverage isn’t an “add-on” or an afterthought—it’s an integral part of the health insurance portfolio.
What most people—either agents or clients—don’t understand is that First Dollar is a class of coverage, and not a 1-2-3 plan enhancer. The point of the First Dollar plan is to function as your first line of defense—and cover some of the initial expenses that make up a health plan deductible.
The majority of employers or people shopping for healthcare on exchanges will either choose or at least review high-deductible plans, often paired with an HSA (Health Savings Account). The high deductible plans help keep premiums low, but that also means that they leave you with a large ‘gap’ in coverage. The deductible of $5,000–$8,000 dollars has to come from your pocket first, which is why the plans are often paired with an HSA: the HSA lets you reimburse some of your initial expenses, but are often not enough. Most people can’t readily pay $8,000+ dollars out of pocket—that why they bought health insurance in the first place!
This is where the First Dollar coverage comes in. You could pick an Accident plan, a Cancer plan, a Critical Illness plan, a Hospital Indemnity plan or some combination of any of those—all with the intent of having those plans pitch in to cover part of that large deductible in the event of an accident, a cancer diagnosis, a hospital stay and so on.
The Major Medical plan is just that—it helps cover major medical events. First Dollar coverage is also that simple—it’s the first working dollars to cover your expenses right out of the gate. Together, the two plan types for a more complete coverage option, with the benefit of being customizable to fit your needs.
First Dollar coverage means more than just big ticket items too. Have a family history of cancer? A First Dollar Cancer plan is a good bet! Do you have kids in sports, or do you go outside in the winter snow? An accident or Hospital Indemnity plan makes a lot of sense. While a few stitches or a quick check for a twisted ankle aren’t as costly as a broken bone or a hospital stay for a bad fever, all of those events will start for you out of pocket, and no one like having to pony up for things while they’re also paying for health insurance. Have a small lump, but worried about getting it checked out? What if doctors do lots of scans and it turns out to be nothing? Hear a pop or get a twinge moving something to or from an attic or garage? First Dollar Coverage is here for those and more.
No good agent wants to help a client navigate health insurance options, make a choice and say “I’m glad we found something that will work well for you. I’m sorry about the $6,000 hole in your initial coverage—your HSA (if you have one) can help a bit, but you’d better get saving!” At best, that feels like a half baked solution. At worst, you and your client may feel like you were unable to adequately meet the client’s needs—even if you found the best possible option for Major Medical for the client. First Dollar Coverage can help top bridge the gap in covered expenses left by a high deductible—which is part of why it really isn’t an add-on, but part of the whole package.
It’s more than just you offering a low-cost option to offer different options to assist the client with covering the deductible. It’s about you as a trusted expert assisting your client with some of their most important coverage by ensuring what they choose has maximum usability, and therefore get utilized as often as possible to help ensure the health of the client. After all, that’s the whole point of their health insurance in the first place. It often feels like ‘just in case’ coverage, rather than coverage that can be used throughout a client’s life, both to keep them healthy and to assist in recovery if something happens.
The Swanson’s’ ten-year-old son, Luke, broke his ankle when he crashed his bike. Their accident benefit helped cover treatment costs, plus additional costs for x-rays and crutches.
Melissa broke her leg playing rugby and spent a few hours in the emergency room. The doctor ordered x-rays, two follow up visits and three physical therapy sessions. She paid the deductible and coinsurance for her major medical insurance as out-of-pocket expenses. Then she filed a claim through her Accident Insurance and received enough to cover her out-of-pocket expenses. She even had a little extra to cover some of her monthly bills.
Mark and Julie love to go camping. On a hike, Mark stumbled over a log, fell and broke his arm. He used his benefit to cover his yearly deductible and co-pays for the surgery, hospital stay and physical therapy.
Darren is 28, single and an avid reader. On his way to the bookstore, he was in a car accident and suffered bruised and cracked ribs. Darren’s Accident Insurance helped cover his out-of-pocket costs for the emergency room visit. He also used some of his benefit to rent a car while his was being repaired.
Insurance that pays for injury or death resulting from an accident.
Insurance for hospital costs for individuals under 65, provided by LifeSecure.
Cancer insurance is a type of insurance policy that provides financial assistance to individuals diagnosed with cancer.
Cancer – abnormal cell growth, heart attack – damage to heart muscle, stroke – brain cell death due to lack of blood flow.
Only $149 for a 2 day ticket (Retail $199)
