Which of the following statements best describes the purpose of health insurance?

The purpose of health insurance primarily revolves around providing financial protection against unexpected health costs. This means that when individuals face unforeseen medical expenses, such as surgeries, hospitalizations, or emergency care, health insurance helps cover a significant portion of these costs. This protective mechanism allows individuals to access necessary healthcare without the burden of potentially crippling financial debt.

Health insurance is designed to pool risk among a large population, allowing individuals to share the costs associated with health care. Therefore, when an individual is faced with a medical emergency, the insurance mitigates their out-of-pocket expenditure, ensuring that they can seek the required medical attention without excessive financial strain.

Comprehensive coverage for all medical procedures, while valuable, is not the defining purpose of health insurance. Many policies may not cover all procedures due to various limitations or exclusions. Likewise, promoting health services to the uninsured and limiting patients’ choices in healthcare providers do not accurately capture the essence of what health insurance is meant to accomplish. The primary goal remains to offer a safety net for unexpected medical expenses to protect individuals from financial hardship.