What is the purpose of health insurance?

The purpose of health insurance primarily revolves around the protection it offers individuals against the potentially high costs of medical care. By pooling risks among a large group of insured individuals, health insurance helps ensure that those who experience unexpected health issues do not face prohibitive financial burdens. This coverage allows individuals to access essential health services, from routine check-ups to emergency interventions, without the fear of overwhelming expenses.

While promoting wellness and preventive care is an important aspect of some health insurance plans, it is not the sole purpose of health insurance. Health insurance encompasses a broader spectrum of financial protection and accessibility for various medical needs.

Moreover, although managing healthcare providers' revenue streams is a component of the healthcare system, it does not align with the fundamental objective of health insurance, which is to prioritize the financial safety and accessibility of care for individuals. Therefore, the most comprehensive understanding of health insurance positions it as a tool for safeguarding against high medical costs and ensuring access to necessary healthcare services.