What is the main purpose of health insurance?

The primary purpose of health insurance is to protect individuals and families against high healthcare costs. This financial safety net allows policyholders to share the risk of healthcare expenses, which can be substantial due to unexpected illnesses or injuries. Health insurance typically covers a portion of medical costs, such as hospital visits, surgeries, and preventive care, thereby reducing the out-of-pocket expenses that insured individuals would face.

Health insurance serves to make healthcare more accessible by alleviating the burden of potentially overwhelming medical bills. By spreading risk among a larger population, insurance makes it more feasible for individuals to receive necessary medical care without the fear of incurring unmanageable debt. This protection encourages people to seek medical assistance when needed, which can lead to better health outcomes rather than avoiding care due to cost concerns.

In contrast, the other options present misleading or incorrect notions about the purpose of health insurance. While full coverage of all medical expenses can be an attractive feature, it is not realistic in practice and not the fundamental aim of health insurance. Additionally, health insurance isn’t designed to limit patient access to services or to reduce the quality of healthcare; rather, it aims to enhance access to necessary care while managing costs effectively.