What is the primary purpose of health insurance?

The primary purpose of health insurance is to provide financial protection against high medical costs. Health insurance helps individuals manage the potentially overwhelming expenses associated with medical care, including hospital stays, surgeries, prescription medications, and routine check-ups. By paying a premium, insured individuals receive coverage that significantly reduces their out-of-pocket expenses when they require medical services. This protective aspect of health insurance is crucial in preventing financial hardship due to unexpected health issues.

Other options, while they may contain some truth, do not encompass the main goal of health insurance. Ensuring immediate access to healthcare might be a benefit of having health insurance, but it is not its primary purpose, as access can be influenced by various factors like provider availability and insurance network restrictions. Covering the full cost of all medical expenses and eliminating all health-related expenses are unrealistic expectations, as most health insurance plans involve deductibles, copayments, and limitations on coverage. Therefore, these options fail to reflect the essence of health insurance and its role as a financial safety net for medical costs.