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 aims to mitigate the risk of high medical costs that can arise from unforeseen health issues or accidents. By paying a premium, individuals can protect themselves from the burden of significant healthcare expenditures, which can be overwhelming without insurance coverage. Health insurance plans typically cover a range of services, including preventive care, hospital visits, surgeries, and prescription medications, ensuring that individuals can access necessary care without incurring exorbitant out-of-pocket costs.

Other options describe aspects that are not representative of the primary goal of health insurance. For example, while some insurance plans may cover a significant portion of healthcare costs, there is often a cost-sharing component, so it does not cover all healthcare costs entirely. Additionally, health insurance should not limit the choice of providers; rather, it often gives consumers a choice, although some plans may operate within specific networks. Lastly, health insurance does not eliminate the need for medical treatment—instead, it provides a means for individuals to afford such treatments when necessary.