What is the primary purpose of health insurance?

The primary purpose of health insurance is to provide financial protection against medical expenses. This means that health insurance helps individuals manage the costs associated with healthcare services, such as hospital visits, surgeries, and prescription medications. By sharing the financial risk with an insurance provider, individuals can access necessary medical care without facing overwhelming out-of-pocket expenses.

While improving public health standards, defining health care regulations, and promoting wellness and prevention programs are important aspects of healthcare systems, they are not the primary focus of health insurance itself. Health insurance specifically aims to mitigate the financial burden of medical care, ensuring that individuals can receive treatment when needed without incurring prohibitive costs that could lead to financial hardship. This fundamental role makes health insurance a critical component of personal and public health care.