What is the expected outcome of coinsurance in Medicare?

The expected outcome of coinsurance in Medicare is that it serves to split costs between Medicare and beneficiaries. Coinsurance is a cost-sharing mechanism in which both the Medicare program and the beneficiary share the expenses associated with medical services. Typically, after the beneficiary has met their deductible, they may be responsible for a specific percentage of the costs for covered services. This arrangement ensures that beneficiaries have some financial responsibility, which can help deter overutilization of healthcare services while also providing some coverage from Medicare for the remaining costs. This balance helps maintain sustainability within the Medicare system.

The other choices depict misunderstandings about the role of coinsurance. It does not cover all medical costs, as there are limits to what Medicare pays, and beneficiaries are responsible for a portion of their costs through coinsurance. It also does not aim to mitigate provider expenses directly; rather, it determines the patient's share of the costs. Lastly, coinsurance does not eliminate fees; it establishes shared financial responsibility rather than removing costs altogether.