What is meant by "balance billing" in the context of Medicare?

Balance billing refers to the practice where a healthcare provider charges a patient the difference between what they bill for services and what Medicare (or any other insurer) actually pays. In this context, when a provider accepts Medicare payment rates, they cannot bill the patient for the difference. However, in some situations, particularly with out-of-network providers, balance billing may occur, resulting in higher costs for the patient.

This option accurately encapsulates the practice of balance billing in Medicare because it highlights the financial responsibility that can fall upon patients when the total billed amount exceeds what Medicare covers. Understanding this concept is crucial for beneficiaries to be aware of potential out-of-pocket expenses they might incur when using services from providers who do not accept Medicare's approved payment amounts.

In contrast, the other options describe scenarios that do not fit the definition of balance billing. For instance, billing only what Medicare pays does not include additional charges, while charging for services not covered or not billing beneficiaries at all does not reflect the situation where a difference exists between billed amounts and what Medicare pays. Therefore, the chosen answer effectively illustrates the key characteristic of balance billing in the Medicare context.