What is the primary purpose of health insurance?

The primary purpose of health insurance is to provide financial protection from high healthcare expenses. This means that health insurance plans are designed to help individuals and families manage the costs associated with medical care, whether it’s for routine check-ups, emergencies, or chronic condition treatments. By pooling risk among many members, health insurance allows individuals to pay a monthly premium in exchange for coverage of various healthcare expenses, which can include hospitalization, doctor visits, surgical procedures, and more.

This financial protection is crucial because medical costs can be unpredictable and can quickly accumulate, leading to significant financial strain if one does not have insurance. Health insurance helps mitigate this risk by covering a substantial portion of such costs, thus making healthcare services more accessible.

Other choices, although they touch on aspects of healthcare, do not encompass the primary function of health insurance. For example, limiting coverage only to preventive care ignores the reality that medical expenses can arise from various health needs beyond just preventive measures. Additionally, health insurance does not make all medical treatments free; rather, it helps reduce the out-of-pocket expenses individuals would face. Lastly, while prescribing medications is an important role for healthcare providers, it is not the purpose of health insurance itself. The core aim is to offer a safety net for financial burdens related