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First dollar coverage in insurance refers to a type of policy where the insured receives benefits from the very first dollar of covered medical expenses, without having to meet a deductible first. This means that as soon as an insured individual incurs a medical expense that is covered under the policy, they can begin receiving benefits immediately.

This type of coverage is particularly attractive because it alleviates the burden of having to pay out-of-pocket costs before the insurance kicks in, allowing for easier access to healthcare services. It simplifies the claims process and provides peace of mind, knowing that financial barriers are minimized when seeking necessary medical care.

Other options suggest aspects of coverage or limitations that don't accurately encapsulate the nature of first dollar coverage. For instance, while having no fees when seeking treatment could be beneficial, it does not directly explain the core principle of first dollar coverage. Similarly, covering elective procedures without limits and all prescriptions in full do not pertain to the key attribute of first dollar coverage specifically being the absence of a deductible.