What is the primary purpose of health insurance?

The primary purpose of health insurance is to provide financial protection against the costs of healthcare services. This means that health insurance helps individuals manage the unpredictable and often substantial expenses that can arise from medical treatment. By having coverage, policyholders can reduce their out-of-pocket costs for doctor visits, hospital stays, surgeries, and medications. This financial buffer encourages people to seek necessary medical care without the fear of incurring crippling debt.

While options like offering discounts on medical procedures or providing income during sickness pertain to healthcare, they do not encapsulate the core objective of health insurance. Discounts might help lower costs but they don’t constitute insurance, which is fundamentally about risk management. Similarly, while some health insurance plans may provide certain benefits that include income support for time off due to illness, this is not the primary aim of health insurance. Finally, although comprehensive health insurance may cover many medical expenses, it does not typically cover all costs without limit, as there are usually caps, exclusions, and patient responsibilities, which further underscores that the main intent is to offer financial protection rather than unlimited coverage.