What does the term "cost-sharing" refer to?

• A. The total cost of insurance paid by the insurer
• B. The costs shared between enrollees and their health insurance provider
• C. The costs that only the insurer pays
• D. Only premium payments made for health insurance

Answer: (B)

The term "cost-sharing" specifically refers to the expenses that enrollees are responsible for paying out-of-pocket in conjunction with their health insurance provider. This typically includes expenses like copayments, deductibles, and coinsurance that members incur when receiving medical care.

In the context of health insurance, cost-sharing is a mechanism designed to distribute some of the financial burden of healthcare costs between the insurer and the insured. This approach helps prevent overutilization of medical services and keeps premiums lower, as it incentivizes members to think critically about their healthcare choices. Understanding cost-sharing is crucial for individuals navigating their options within health insurance marketplaces, such as the Maryland Health Connection, as it affects their overall healthcare spending.