Final answer:
The statement is false; the term for the amount paid before Medicare begins to cover costs is called a deductible, not the premium. Medicare Part A and Part B both require deductibles, as well as co-insurance payments or co-payments.
Step-by-step explanation:
The statement that the premium is the amount you must pay for health care before Medicare begins to pay is false. The correct term for the amount you must pay before Medicare coverage kicks in is a deductible. Medicare has two main parts:
- Part A, which typically covers hospital charges and requires both a deductible and copayments.
- Part B, an optional insurance that covers non-hospital medical expenses such as physician services and outpatient visits, also has a deductible, monthly fees, and copayments.
Additionally, health insurance often requires cost-sharing, which can take the form of co-insurance payments or co-payments, depending on the health care services provided and the structure of the insurance plan.