What is "cost-sharing" in Medicare?

Cost-sharing in Medicare refers to the out-of-pocket expenses that beneficiaries are responsible for in relation to their healthcare services. This includes various types of payments such as deductibles, coinsurance, and copayments, which are the portions of the costs that beneficiaries must pay when they receive medical care.

The correct answer highlights that cost-sharing represents the share of these expenses that individuals must cover themselves, rather than the full payment amount or exclusively related to specific areas like prescription drugs. Understanding cost-sharing is essential for beneficiaries as it directly impacts their overall healthcare expenses and budget planning.

Other options like the full payment amount or premiums do not accurately reflect the shared responsibility structure that defines cost-sharing within the Medicare framework. The focus of cost-sharing is on the beneficiary's direct contributions rather than the entire service cost or solely prescription copayments.