Final answer:
Medicare Part B recipients are responsible for a monthly premium, an annual deductible, coinsurance or copayments, and possible excess charges if a provider does not accept Medicare assignment. These cost-sharing measures aim to reduce moral hazard by making beneficiaries partly financially responsible for their healthcare.
Step-by-step explanation:
The four charges that Medicare Part B recipients are responsible for can be categorized as follows: a monthly premium, an annual deductible, coinsurance or copayments for covered services, and charges above the amount approved by Medicare.
- Monthly Premium: This is the regular fee that enrollees must pay for Medicare Part B coverage, regardless of the amount of medical services they utilize.
- Annual Deductible: Before Medicare starts to pay for covered services, beneficiaries must pay an out-of-pocket amount annually.
- Coinsurance/Copayments: These are the shares of the costs for medical services that beneficiaries must pay after the deductible has been met. Typically, this is a certain percentage of the service cost or a flat fee.
- Excess Charges: If a medical provider does not accept Medicare assignment, the cost above the Medicare-approved amount for a service may be charged to the beneficiary.
All these charges are part of the cost-sharing features designed to discourage moral hazard and help control medical expenditure by ensuring that beneficiaries have a financial stake in their healthcare.