Final answer:
The public administration principle of Medicare signifies its operation as a government-administered program, specifically overseen by the U.S. federal government's Centers for Medicare & Medicaid Services.
Step-by-step explanation:
The public administration principle of Medicare refers to Government administration. Medicare is a national health insurance program in the United States that provides health care coverage to people who are 65 or older, certain younger people with disabilities, and individuals with End-Stage Renal Disease. The program is administered by the federal government, specifically the Centers for Medicare & Medicaid Services (CMS), which is a branch of the U.S. Department of Health & Human Services (HHS). This clearly indicates that Medicare falls under the category of government-administered programs, meaning the correct answer is B) Government administration.