What is the purpose of health insurance?

The purpose of health insurance is fundamentally about mitigating the financial burden that can result from illness or injury. When individuals have health insurance, they are protected from the high costs of medical care, which can be prohibitively expensive in the event of serious health issues. This financial protection allows people to seek necessary medical attention without the fear of incurring overwhelming debt.

While promoting healthy living is an important aspect of overall health strategy, it is not the primary purpose of health insurance itself. Health insurance does not provide free medical care; instead, it typically covers a portion of medical expenses, requiring individuals to share in those costs. Additionally, health insurance is designed to encourage people to seek necessary care rather than encouraging risky behavior. Overall, the central aim of health insurance is to serve as a financial safeguard against the unpredictable nature of health-related expenses.