Final answer:
Medicare Part B requires a yearly deductible and copayments. These cost-sharing measures, which also include the monthly premium, are in place to prevent overutilization of services and reduce moral hazard.
Step-by-step explanation:
Medicare Part B is indeed an optional insurance program that covers health care services outside of hospital stays, such as physician services, medical tests, and outpatient visits. It requires that participants pay a monthly premium, a yearly deductible, and various copayments. The government contributes to about three-fourths of these overall costs.
The system is designed to share the cost of healthcare between the insurer (the government, in this case) and the insured (the Medicare beneficiary). This cost-sharing mechanism includes deductibles and copayments to discourage overutilization of healthcare services, a concept known as moral hazard. A deductible is the amount a policyholder must pay annually before insurance kicks in, while a copayment is a fixed amount payable for a covered service after the deductible has been met.
It's important for beneficiaries to be aware that they are responsible for these out-of-pocket costs, which can affect their healthcare expenses throughout the year. As policies and conditions may change, always check the latest Medicare guidelines for the most current rates and rules.