What does "cost-sharing" refer to in health insurance?

Cost-sharing in health insurance refers to the financial contributions that the insured individual makes toward their medical expenses. This can include deductibles, copayments, and coinsurance. These contributions are designed to share the financial burden of healthcare costs between the insurer and the insured.

When an insured person receives medical services, they often pay a portion of the cost, while the insurance company covers the remaining amount. This system encourages patients to be more mindful of their healthcare usage and helps control overall healthcare spending. It is distinct from the total monthly premium, which is the flat fee paid to maintain insurance coverage, but does not directly contribute to individual care costs.

In contrast to the correct choice, the incorrect options focus on other aspects of health insurance that do not define cost-sharing. Expenses covered entirely by the insurance company mean no out-of-pocket payment from the insured, which contradicts the concept of cost-sharing. The total monthly premium is a different component of health insurance, as it does not reflect the insured's direct contributions to specific medical expenses. Lastly, payments made by the insurer to healthcare providers do not capture the insured's financial participation in their own care costs.