Final answer:
The Medicare coinsurance amount is the share of medical costs a person with Medicare insurance must pay after meeting the deductible. It is part of health insurance policies that include deductibles, copayments, and coinsurance, aimed at reducing moral hazard and preventing overutilization of services.
Step-by-step explanation:
The term Medicare coinsurance amount in the first calendar year billing period describes the percentage of medical costs that a Medicare policyholder is responsible for paying after the deductible has been met. This concept is a part of health insurance policy structures, which often include deductibles, copayments, and coinsurance. Medicare Part A requires beneficiaries to cover a deductible and coinsurance for different services.
For instance, in a fee-for-service arrangement, after a policyholder pays the deductible, the coinsurance mechanism requires the policyholder to account for a certain percentage of the remaining costs. This cost-sharing mechanism is designed to reduce moral hazard by having insured individuals bear a portion of the financial burden, preventing excessive utilization of medical services. Furthermore, while coinsurance helps in sharing costs between the insurer and the insured, there are usually no limits on the total expenses an individual can incur.