What does the term 'co-insurance' mean in Medicare?

• A. The flat fee paid for each healthcare service.
• B. The amount paid before services are received.
• C. The percentage of costs beneficiaries pay after deductibles are met.
• D. The total costs beneficiaries pay for preventative services.

Answer: (C)

Co-insurance in the context of Medicare refers to the percentage of the costs that beneficiaries are responsible for after they have met their deductible. This means that once a beneficiary pays their deductible amount, they will continue to be responsible for a certain percentage of the remaining healthcare costs for services received. For example, if the co-insurance rate is 20%, the beneficiary would pay 20% of the costs for covered services, while Medicare would cover the remaining 80%. This structure helps to share the financial responsibility between Medicare and the beneficiary, making it essential for Medicare recipients to understand how co-insurance works when budgeting for healthcare expenses.

The other options do not accurately reflect the definition of co-insurance. The flat fee mentioned refers to co-pays, while pre-service payments symbolize deductibles, and preventative service costs usually have different payment structures that do not involve co-insurance.